LA Fitness Seeks Debt Deal With Lenders to Weather Shut Gyms
- Lenders hired investment bank PJT Partners for negotiations
- Fitness chain’s forbearance is scheduled to expire Oct. 15
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LA Fitness International LLC is weighing options including a capital raise to ease its roughly $1.7 billion debt load and keep its gyms operating during the pandemic, according to people with knowledge of the matter.
The fitness chain is seeking a deal with lenders to shore up liquidity, said the people, who asked not to be named discussing a private matter. LA Fitness is already operating under a forbearance agreement that expires Oct. 15. Advisers from PJT Partners are representing lenders in talks with LA Fitness, and they’ve reached out to the company in recent days about working toward a consensual deal, the people said.