24 Hour Fitness firms $850 million term loan at Libor plus 350 bps

By Sara Rosenberg

New York, May 24 – 24 Hour Fitness Worldwide Inc. finalized pricing on its $850 million seven-year covenant-light first-lien term loan B at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $970 million of senior secured credit facilities (Ba3/B+) also include a $120 million five-year revolver.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, RBC Capital Markets and Citizens Capital Markets are the joint lead arrangers and bookrunners on the deal.

Commitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to refinance existing debt, to backstop, cash collateralize and/or replace existing letters of credit and to pay fees and expenses.

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

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