Town Sports International (TSI), New York, has refinanced its debt as it has entered into new $350 million senior secured credit facilities, the company announced.

The facilities consist of a seven-year term loan facility, which matures May 11, 2018, and a five-year revolving credit facility, which matures May 11, 2016. TSI also has initiated full redemption of its outstanding 11 percent senior discount notes due 2014. Those notes will be redeemed on June 10.

“I am pleased that the refinancing of our debt, which was one of my key initiatives when I returned to TSI last year, has been completed,” CEO Bob Giardina said in a statement. “We will continue to focus on improving the profitability of our existing club base, where our initiatives to drive membership and operate more efficiently are providing results. However, the flexibility provided by our refinancing will also allow us to consider strategic initiatives as they present themselves in the future, as well as opportunities to enhance returns for our shareholders.”

Dan Gallagher, TSI’s chief financial officer, added that because of the refinancing, along with the company’s existing cash on hand and cash flows from operations, TSI is expected to meet its estimated capital requirements for the next several years.

Deutsche Bank Securities Inc. and KeyBanc National Association served as joint lead arrangers and joint bookrunning managers for the credit facilities. TSI announced last month that it had elicited the aid of Deutsche Bank and KeyBanc.

Last month, TSI announced that its first quarter 2011 revenue decreased by 0.9 percent compared to the previous period last year. The decrease was driven mostly by promotion costs and a decline in membership dues revenue, which was due to the introduction of several restricted memberships at lower rates, according to the company.

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