24 Hour Fitness to launch $1 billion credit facility on Thursday

By Sara Rosenberg

New York, April 29 - 24 Hour Fitness Worldwide Inc. is set to hold a bank meeting on Thursday to launch a $1 billion credit facility, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

The facility consists of a $150 million revolver and an $850 million seven-year term loan B, the source said.

Price talk on the B loan is Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99 to 991/2, the source continued.

Included in the term loan is 101 soft call protection for six months.

Proceeds will be used to help fund the buyout of the company by AEA Investors and Ontario Teachers' Pension Plan from Forstmann Little & Co.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

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