Fitness International LLC (parent of LA Fitness) successfully refinanced its credit facilities. The new facilities consist of:
- 1L $300 Million Revolving Credit facility due 2028 with $61 million drawn at closing
- $300 million term loan A due 2028
- $675 million term loan B due 2029
Overall, this refinancing transaction represents a key milestone. It was reported that membership and revenue as of September 2023 have almost fully recovered to pre-pandemic levels. LA Fitness’ TTM revenue was reported at $2.09 billion as of September 30, 2023. Lastly, liquidity following the transaction appears to be more than adequate for near-term needs. The Company had cash balances of roughly $150 million at closing and estimated liquidity under the revolver of around $240 million. Additionally, though interest expense will increase by about $20 million from the refinance, mainly due to increased rates, the Company’s term loan amortization has significantly decreased from around $72 million to $22 million (set to increase to $29 million in 2026).