LA Fitness recently received a $300 million acquisition loan, according to a report, and sources indicate the Irvine, CA-based company is close to purchasing a club company.
The loan was acquired from GE Capital, Norwalk, CT, a division of General Electric. GE Capital is the same company that provided Planet Fitness with a $40 million loan last year.
Standard and Poor’s Leveraged Commentary and Data (LCD) first reported news of the LA Fitness loan. GE was shopping the loan to potential lenders and has structured the credit as a $100 million revolver and a $200 million term loan, LCD reported.
LA Fitness declined comment to Club Industry about the funding and about the possible acquisition. GE Capital could not be reached for comment.