#USA #Carlsbad #24 Hour Fitness #TCW Group #Health and Fitness

24 Hour Fitness Closes $305 Million Senior Secured Facility

In a bold move to strengthen its financial position, 24 Hour Fitness, a well-established name in the health and fitness industry, has successfully closed a $305 million senior secured facility with affiliates of The TCW Group. This milestone transaction is not just a financial maneuver but a strategic step aimed at supporting the company’s evolution and growth.

The financing arrangement is significant as it arrives in a time of solidifying the company’s footing as one of the largest fitness club operators in the U.S. By addressing impending debt maturities and boosting liquidity, 24 Hour Fitness is positioned to enhance its operational capabilities while securing the trust of investors.

Navigating a Transformational Phase

The refinancing signifies more than just an influx of capital; it reflects 24 Hour Fitness's recent improvements in financial performance and operational scalability. The secured financing, which includes both new capital and revolving commitments, enables 24 Hour Fitness to pursue long-term strategic initiatives.

Karl Sanft, the Chief Executive Officer, conveyed the significance of this economic backing by stating, “This financing is more than just a capital raise — it is a strong endorsement of our business trajectory and operational momentum.” Sanft emphasized that this move will provide the flexibility necessary to optimize the club portfolio and enhance the overall member experience, which has always been a core focus of the company.

With TCW now the primary lender, the backing from notable equity partners, including Monarch Alternative Capital, Sculptor Capital Management, and Cyrus Capital Partners, signals not just financial support, but a belief in the long-term vision of 24 Hour Fitness.

Committed to Member-Centric Growth

The company aims to leverage this financing to maintain healthy cash flow generation, which is essential for continued investments in innovation and improvement of services offered to its members. As fitness trends shift and consumer expectations evolve, 24 Hour Fitness recognizes the necessity of investing in modern solutions that meet the demands of its clientele.

The ongoing financial backing of robust investors is crucial in steering the company toward realizing ambitious growth objectives. According to Patrick Fallon, Managing Principal at Monarch, “24 Hour Fitness has demonstrated significant progress in recent years, both operationally and financially.” This sentiment reinforces the optimism surrounding 24 Hour Fitness and underscores the growth potential in an increasingly competitive landscape.

Future Directions

Looking forward, 24 Hour Fitness is set to enhance its portfolio by focusing on delivering exceptional member experiences amid a landscape increasingly marked by innovation. Whether through new fitness technologies, upgraded facilities, or enriching community programs, the goals set forth remain grounded in fostering a healthier, happier world through fitness—an ethos that 24 Hour Fitness has championed for over four decades.

In conclusion, the $305 million secured facility positions 24 Hour Fitness not only to navigate the challenges of today’s health and fitness market but also to thrive. With a steadfast commitment to member satisfaction and a strategy grounded in solid financial foundations, the company is on the cusp of redefining its future within the industry. Members can look forward to an exciting evolution, ushering in an era of enhanced services and community cohesion.

For those interested in witnessing this transformation, staying updated with 24 Hour Fitness will reveal a journey that promises to prioritize the needs and aspirations of its members, continuing to lead in wellness and fitness innovation.

For additional details and to explore membership options, visit www.24hourfitness.com.

• ---