To learn more about Town Sports, please visit the company’s Web site at www.mysportsclubs.com. Town Sports uses its Web site as a channel of distribution of material company information. Financial and other material information regarding Town Sports is routinely posted on the company’s Web site and is readily accessible.Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company’s Safe Harbor Compliance Statement for Forward-looking Statements included in the company’s recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
Town Sports International Holdings, Inc. (the “Company”) (NASDAQ: CLUB), announced today that it has successfully completed a repricing of its currently outstanding $270.7 million senior secured term loan, reducing current interest rates on the term loan by a total of 125 basis points. The repricing was effected through an amendment to the Company's existing credit agreement. The amendment reduced the applicable margin on the initial term loans from 4.50% to 3.50% for Base Rate Loans and from 5.50% to 4.50% for Eurodollar Loans and reduced the interest rate floor on the initial term loans from 2.50% to 2.25% for Base Rate Loans and from 1.50% to 1.25% for Eurodollar Loans. The credit agreement was also amended to convert the existing voluntary prepayment penalty from a 101 hard call provision, originally scheduled to end in May 2013, to a 101 soft call provision ending in August 2013. All other principal provisions, including maturity and covenants under the Company’s existing credit agreement, comprised of the term loan facility and a $50 million revolving credit facility, remain unchanged. The Company expects to incur approximately $4.1 million in fees and expenses in connection with the amendment, including a 1.0% amendment fee of $2.7 million and $1.4 million of related bank and legal fees. Dan Gallagher, Chief Financial Officer, commented: “We have greatly improved the Company’s credit profile over the past year and are pleased we were able to complete this re-pricing, saving approximately $3.4 million of cash interest costs in 2013.” About Town Sports International Holdings, Inc. New York-based Town Sports International Holdings, Inc. is a leading owner and operator of fitness clubs in the Northeast and mid-Atlantic regions of the United States and, through its subsidiaries, owns and operates 160 health and fitness facilities in four major metropolitan areas—New York, Boston, Washington, D.C. and Philadelphia—with over a half million members.