French Bank to Sell $225M Loan for Fitness-Club Chain

Banque Nationale de Paris is expected to bring a new $225 million leveraged loan to market Thursday for 24 Hour Fitness, the second-largest chain of fitness clubs in the U.S.

The new loan replaces a $150 million credit the bank put in place for the company earlier this year and is part of a recapitalization sponsored by McCown Deeleuw & Co., a private equity firm.

Pleasanton, Calif.-based 24 Hour Fitness owns and operates 152 clubs with more than 1.2 million members, primarily in California but also in Texas, Nevada, Oregon, Colorado, and Hawaii, said Gary A. Ladolcetta, vice president at BNP.

"We've been banking them for a number of years now," said Mr. Ladolcetta.

Banque Nationale de Paris is underwriter and sole agent for the new loan, which is divided into three parts: a $50 million five-year revolving credit, a $50 million five-year term loan A, and a $125 million seven-year term loan B.

The revolver and term loan A are priced at 275 basis points over the London interbank offered rate, and the term loan B is 325 basis points over Libor.

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