Town Sports gets Moody's boost |
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Thu, 01 Feb 2007 20:55
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NEW YORK (AFX) - Moody's Investors Service upgraded the corporate family rating of Town Sports International Holdings Inc. Thursday, citing the health club operator's move to buyback notes.Moody's upgraded the corporate family rating to 'B1' from 'B2' and the rating on its senior discount notes to 'B3 from 'Caa1' with a stable outlook. The ratings remain non-investment grade.On Jan. 29, Town Sports started a tender offer to buyback its outstanding 9 5/8 percent senior notes due 2011. The offer will expire Feb. 26, unless extended. The company expects to buy the shares with borrowings from a $185 million senior secured term loan facility, and will enter into a new $75 million senior secured revolver.Moody's said it will withdraw the 'B2' rating on the notes. It also upgraded to 'B1' from 'B2' the company's probability of default rating.Shares of Town Sports, which operates the New York Sports Club chain, fell 15 cents to $19.55 on the Nasdaq in afternoon trading.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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