24 Hour Fitness $600 million term loan pricing firms at Libor plus 475 basis points

By Sara Rosenberg

New York, April 20 - 24 Hour Fitness Worldwide Inc. firmed pricing on its $600 million six-year term loan at Libor plus 475 basis points with a step-down to Libor plus 450 bps when leverage is less than 2.5 times, after flexing up from initial talk of Libor plus 400 bps, according to a market source.

In addition, the original issue discount on the term loan ended up at 98, wide of the initial 98½ talk, the source said.

There is also 101 soft call protection for one year.

As before, the term loan includes a 2% Libor floor.

JPMorgan, Deutsche Bank and Wells Fargo are the lead banks on the deal, with JPMorgan the left lead.

The $675 million credit facility also contains a $75 million five-year revolver.

Proceeds will be used to refinance existing debt.

24 Hour Fitness is a San Ramon, Calif., fitness center company.

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