News and Analysis
Equinox gets another reprieve from revolver lenders as refinancing talks advance
- Rachel Butt
•2 min read
Equinox has pushed out its revolver maturity to 29 February, again buying it more time to explore refinancing options, according to 9fin sources.
That came after revolver lenders agreed on a two-month extension from last November, in exchange for higher coupon and a slight debt paydown, sources said.
The luxury fitness company, which owns the SoulCycle chain, has been gauging interest from third parties to raise around $400m in preferred equity and roughly $1.3bn in the form of a new loan to address upcoming maturities, sources said.
Aside from the revolver, Equinox is facing a more than $1bn first lien term loan maturity in March, as well as a $200m second lien term loan due in September, according to a Moody’s note.
The company, which is backed by Stephen Ross’s Related Cos, has so far attracted some demand for the preferred equity piece, they said. But talks are ongoing and plans could change, they added.
HPS and Ares are among investors looking to provide new funding to Equinox, sources said. Back in 2021, HPS agreed to amend certain debt terms under a credit facility it had provided to SoulCycle — including releasing Equinox’s obligations to buy back some of the cycling chain’s debt — as the entire fitness industry was hit hard by pandemic-driven restrictions.
Equinox has since improved its performance thanks to higher membership fees, sources said.
Quotes on the company’s first lien loan are hovering at 99 cents on the dollar, while the second lien loan is at roughly 96 cents.
Representatives at Equinox, Related and Ares didn’t respond to requests for comment. HPS declined to comment.
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