The parent company of Star Trac and StairMaster received an infusion of capital as both brands expect to grow in 2013.
Core Health and Fitness LLC, Vancouver, WA, announced Thursday it has closed on a $43 million debt facility with PNC Bank and UPS Capital Corp. The agreement was finalized on Dec. 14.
"Our new relationship with PNC and UPS Capital provides working capital flexibility as we continue to grow our world class brands, while substantially lowering our cost of capital," Ean Reves, chief financial officer of Core Health and Fitness, said in a statement. "The commitment of these two well-respected lenders speaks to our recent success in stabilizing and strengthening our financial position."
PNC Bank is a member of The PNC Financial Services Group. UPS Capital is the financial services arm of package delivery company UPS. Of the $43 million, $40 million is in the form of an asset-based revolver, with a $3 million senior term note.
"Our work with PNC and UPS Capital demonstrates our commitment to build this company into the leading provider of innovative equipment and service for our customers," Dustin Grosz, president and COO of Core Health and Fitness, said in a statement. "2013 is going to be a great year, and this financing is an important step in our plans."
Core Health and Fitness is a subsidiary of Land America Health and Fitness Co., owned by Michael Bruno, who announced plans last year of taking the company public in China, where Bruno owns and operates an 800,000-square-foot plant.