Bloomberg News

Fitness First Says Lenders Sign Agreement for Debt Restructuring

May 18, 2012

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.

To contact the reporter on this story: Patricia Kuo in London at

To contact the editor responsible for this story: Faris Khan at

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