Town Sports International gets required consents for 9 5/8% notes

By Jennifer Chiou

New York, May 15 - Town Sports International, Inc. announced it received consents from holders of $235.6 million of its 9 5/8% senior notes due 2011 in a tender for up to $85 million of the notes.

The consent deadline was 5 p.m. ET on May 12. Following receipt of the consents, Town Sports said it executed a supplemental indenture.

The company had been soliciting consents to amend the note indenture, waiving any defaults or events of default.

The tender offer, meanwhile, continues and ends at midnight ET on June 1, unless extended.

The company added that it may accept tendered notes on a pro rata basis.

The offer is conditioned upon the completion of a proposed registered offering of parent company Town Sports International Holdings, Inc.'s stock.

For each $1,000 principal amount of notes, Town Sports said it will pay $1,080.04 plus accrued interest up to but excluding the payment date. The payout includes a $15.00 consent payment for those who tendered their securities before the consent deadline.

Deutsche Bank Securities Inc. is the dealer manager and consent solicitation agent. MacKenzie Partners, Inc. is the information agent (call collect 212 929-5500 or 800 322-2885).

The Bank of New York is the depositary (212 815-6331).

New York-based Town Sports owns and operates health clubs. The company began the offer on May 4.

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