EQT-owned Fitness Passport is seeking to raise AUD500mn (circa $322m) through a syndicated term loan, as the private equity sponsor pursues a dividend recapitalisation and refinancing strategy, according to a report by Bloomberg citing sources familiar with the transaction.
The six-year facility is being underwritten by a syndicate of lenders including BNP Paribas, Mitsubishi UFJ Financial Group, and Standard Chartered, the sources said, requesting anonymity due to the confidential nature of the discussions. The proceeds will be used to return capital to shareholders and refinance existing debt.
The transaction marks the latest in a string of sponsor-led recapitalisations amid a subdued exit environment, with GPs increasingly turning to leveraged financings to meet distribution timelines.
The deal mirrors recent moves by other sponsors under similar pressure to return capital, including a £350m senior secured bond issue by Clayton, Dubilier & Rice-backed Wolseley Group, and a $2.265bn debt offering from Aggreko, of which $503m was earmarked for shareholder payouts.
Fitness Passport, which provides a multi-gym corporate membership platform with access to over 1,700 fitness facilities across Australia, was acquired by EQT from local mid-market sponsor The Growth Fund in a transaction valued at approximately AUD750m, according to contemporaneous reports by the Australian Financial Review.
The new facility is being marketed to a targeted group of lenders, carrying an interest margin of 350 basis points over the Bank Bill Swap Rate (BBSW), with total leverage understood to be around 5.2x EBITDA, according to the same sources.
