JPMorgan and Merrill Lynch have launched syndication of a $700 million loan backing Forstmann Little & Co.'s acquisition of 24 Hour Fitness Worldwide. The credit comprises a six-year, $100 million revolver and a seven-year, $600 million term loan "B." Pricing on both is LIBOR plus 2 1/2%.
Mark Mastrov, who founded the company in 1983, will retain a significant stake in the business. It has annual revenues of more than $1.1 billion and about three million members (LMW, 5/6). Calls to the office of Colin Heggie, 24 Hour Fitness executive v.p. and cfo, were referred to an outside public relations firm, which had no comment. Calls to Forstmann Little were also referred to an outside firm which had no comment.