Equinox’s $700 Million of Term Loans Rise in Initial Trading

Nov. 19 (Bloomberg) -- Equinox Holdings Inc.’s $700 million of covenant-lite term loans to refinance debt rose in initial trading, according to Markit Group Ltd.

A $500 million first-lien term portion began trading Nov. 16 at 99.75 cents on the dollar, while a $200 million second-lien piece first changed hands at 99.25 cents, according to Markit. The loans were sold to investors at 98.75 cents and 98 cents, respectively, according to data compiled by Bloomberg.

The first-lien slice pays interest at 4.25 percentage points more than the London interbank offered rate, while the second-lien portion pays interest at 8.5 percentage points more than Libor, the data show. Both portions have a 1.25 percent floor on the lending benchmark.

First-lien lenders were offered one-year soft-call protection of 101 cents while second-lien creditors are being offered hard-call protection of 103 cents during the first year and 102 cents in the second year and 101 cents the following year, the data show.

Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. arranged the deal for the New York-based operator of fitness clubs and spas, Bloomberg data show.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net