24 Hour Fitness starts roadshow for $500 million eight-year notes

By Paul A. Harris

Portland, Ore., May 12 - 24 Hour Fitness Worldwide Inc. began a roadshow on Monday for a $500 million offering of eight-year senior notes (expected ratings Caa1/CCC+), according to a market source.

The deal is expected to price on May 20.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 75% of the coupon.

Proceeds will be used to help fund the buyout of the San Ramon, Calif.-based fitness-club operator by AEA Investors and Ontario Teachers' Pension Plan from Forstmann Little & Co.

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