Excel Fitness firms $260 million term loan at Libor plus 525 bps

By Sara Rosenberg

New York, Oct. 2 – Excel Fitness Holdings Inc. finalized pricing on its $260 million first-lien term loan at Libor plus 525 basis points, the high end of the Libor plus 500 bps to 525 bps talk, according to a market source.

Also, the Libor floor on the term loan was revised to 1% from 0%, the maturity was shortened to six years from seven years, and changes were made to restricted payments, incremental, mandatory prepayments and EBITDA definition, the source said.

The term loan still has an original issue discount of 99.

The company’s $270 million of credit facilities (B3/B) also include a $10 million five-year revolver.

Jefferies LLC, Fifth Third Bank and BMO Capital Markets are the lead arrangers on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to refinance the company’s existing credit facility, to fund cash to the balance sheet for growth, to pay a distribution to shareholders and to pay transaction related fees and expenses.

Excel Fitness is an operator and developer of Planet Fitness clubs.

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