Moody’s gives 24 Hour Fitness DIP facility B3

Moody’s Investors Service said it assigned a B3 rating to 24 Hour Fitness Worldwide, Incdebtor-in-possession financing facility in the form of a $515 million super priority priming term loan.

“The B3 rating on the DIP facility primarily reflects the weak collateral coverage available to lenders and the protections from the structural features of the DIP financing. The rating on the DIP financing facility is being assigned on a point-in-time basis and will not be monitored going forward and, therefore, the rating will be withdrawn shortly and no outlook is assigned to the rating,” Moody’s said in a press release.

The fitness firm filed for Chapter 11 bankruptcy on June 15. Moody’s withdrew all the ratings on 24 Hour Fitness Worldwide, Inc. following the filing.

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