Wahoo Fitness ups spread on $225 million term B to Libor plus 575 bps

By Sara Rosenberg

New York, Aug. 11 – Wahoo Fitness Holdings LLC raised pricing on its $225 million seven-year term loan B (B2/B+) to Libor plus 575 basis points from talk in the range of Libor plus 525 bps to 550 bps, according to a market source.

In addition, the Libor floor on the term loan was changed to 1% from 0.5%, the original issue discount was revised to 97 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

There were also some changes made to documentation.

RBC Capital Markets is the left lead on the deal.

Proceeds will be used to help fund the buyout of the company by Rhone Group and to add cash to the balance sheet. Wahoo’s current investor, Norwest Equity Partners, will continue to own a minority investment in the company.

Closing is expected in the third quarter.

Pro forma for the transaction, the company’s total gross and net leverage will be 2.9x and 2.5x, respectively.

Wahoo is an Atlanta-based provider of fitness technology for indoor cycling and endurance training.

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