Moody's rates 24 Hour notes Caa1

Moody's Investors Service said it assigned a Caa1 to 24 Hour Holdings III LLC's proposed $500 million eight-year senior unsecured notes.

The company's B2 corporate family rating, B2-PD probability of default rating, the Ba3 rating on its proposed senior secured bank facilities and the stable outlook remain unchanged.

The outlook remains stable.

Proceeds from the proposed note issuance, along with the previously announced $850 million senior secured term loan B, will be used in conjunction with the acquisition of 24 Hour Fitness by private equity group AEA Investors LP and Ontario Teachers' Pension Plan. All ratings are subject to the execution of the transaction as currently proposed and Moody's review of final documentation.

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