David Lloyd Leisure sets talk on £645 million and €300 million of secured notes; pricing Friday

By Paul A. Harris

Portland, Ore., June 3 – David Lloyd Leisure set price talk on two tranches of six-year senior secured notes (B3/B+/B) on Thursday, according to a market source.

A £645 million tranche of fixed-rate notes with two years of call protection is talked to yield 5½% to 5¾%, tight to initial guidance of 5¾% to 6%.

A €300 million tranche of floating-rate notes with one year of call protection is talked at Euribor plus 475 basis points to 500 bps, with no Euribor floor, at 99.5. Official spread talk comes tight to initial guidance in the Euribor plus 500 bps area. Official price talk comes on top of initial guidance.

The Rule 144A and Regulation S deal is set to price Friday morning, London time.

Bookrunner Barclays will bill and deliver.

The issuing entity will be Deuce FinCo.

TDR Capital is the sponsor of David Lloyd Leisure.

The Hatfield, U.K.-based health club chain plans to use the proceeds to repay debt and for general corporate purposes, including working capital, capital expenditures and strategic acquisitions.

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