Fitness First Ltd., the gym operator with 1.2 million club members in 15 countries, said more than 90 percent of its lenders signed a lock-up agreement, approving the terms of the debt restructuring.
Lenders will write off all of their debt for an equity stake in the Poole, England-based company and will provide a long-term working capital credit facility, Fitness First said in a statement. It expects the restructuring to be completed by the end of September.
“The combination of having no debts and a committed working capital facility will bring long-term financial security to the company and provide a platform to grow and develop the business,” Fitness First said in the statement.
Lenders led by Oaktree Capital Management LP and Marathon Asset Management LP will get a more than 75 percent stake in Fitness First, people with knowledge of the matter said on May 4. The two firms will also provide 100 million pounds ($158 million) of credit lines, the people said.
BC Partners Ltd., which bought Fitness First in 2005 for 1.2 billion euros, tried and failed last year to sell its stake.
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