Town Sports DIP term loan amended to include supplemental funding

By Sarah Lizee

Olympia, Wash., Nov. 6 – Town Sports International, LLC received court approval of its amended priming superpriority senior secured debtor-in-possession term loan, according to an amended order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Under the amended order, the borrowers are authorized to obtain up to an aggregate principal amount of up to $32 million, plus $2.8 million for every week beginning with the week ending Nov. 13 and for every week thereafter that the closing of the company’s asset sale has not occurred, with the first supplemental DIP funding occurring on Nov. 10.

The DIP facility will be available as a multi-draw term loan, with an aggregate not to exceed $12 million, plus the supplemental DIP funding.

The first supplemental funding will occur on Nov. 10.

As previously reported, Fitness Recovery Holdings, LLC is the lender.

The facility is set to mature 120 days from the petition date.

Interest will be 10% per year, paid monthly in cash.

Town Sports is a Jupiter, Fla.-based owner and operator of fitness clubs. The company filed bankruptcy on Sept. 14 under Chapter 11 case number 20-12168.

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