This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Town Sports International Holdings, Inc. Announces Completion Of Senior Refinancing And Initiates Full Redemption Of Its Outstanding 11% Senior Discount Notes Due 2014

Town Sports International Holdings, Inc. (NASDAQ: CLUB) announced today that it has entered into new $350 million senior secured credit facilities, consisting of a seven-year term loan facility and a five-year revolving credit facility, and that it has initiated a full redemption of its outstanding 11% Senior Discount Notes due 2014 (the “Notes”). Proceeds from the credit facility are being used to repay outstanding borrowings under the existing credit agreement dated February 27, 2007 and to pay for the redemption of the Notes in accordance with their terms.

Bob Giardina, Chief Executive Officer, commented: “I am pleased that the refinancing of our debt, which was one of my key initiatives when I returned to TSI last year, has been completed. We will continue to focus on improving the profitability of our existing club base, where our initiatives to drive membership and operate more efficiently are providing results. However, the flexibility provided by our refinancing will also allow us to consider strategic initiatives as they present themselves in the future, as well as opportunities to enhance returns for our shareholders.”

Dan Gallagher, Chief Financial Officer, commented: “We are very pleased to complete this senior refinancing, which together with our existing cash on hand and cash flows from operations, is expected to meet our estimated capital requirements over the next several years. We will look to take advantage of the prepayment flexibility that comes with this facility while our earnings and cash flows continue to improve.”

The new term loan facility, which matures on May 11, 2018, generally bears interest at rate of LIBOR plus 5.50%, with a 1.50% LIBOR Floor, and the new revolving facility, which matures on May 11, 2016, generally bears interest at LIBOR plus 5.50%, with a step-down of 0.25% or 0.50% during periods as and when certain leverage ratios are satisfied.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs