Town Sports International, New York, announced today that it has completed a re-pricing of its currently outstanding $270.7 million senior secured term loan, reducing current interest rates on the term loan by a total of 125 basis points.

The re-pricing was effected through an amendment to the company’s existing credit agreement. The amendment reduced the applicable margin on the initial term loans from 4.5 percent to 3.5 percent for base rate loans and from 5.5 percent to 4.5 percent for Eurodollar loans. The re-pricing also reduced the interest rate floor on the initial term loans from 2.5 percent to 2.25 percent for base rate loans and from 1.5 percent to 1.25 percent for Eurodollar loans.

The credit agreement also was amended to convert the existing voluntary prepayment penalty from a 101 hard call provision, originally scheduled to end in May 2013, to a 101 soft call provision ending in August 2013. All other principal provisions, including maturity and covenants under the company’s existing credit agreement, comprised of the term loan facility and a $50 million revolving credit facility, remain unchanged.

TSI expects to incur approximately $4.1 million in fees and expenses in connection with the amendment, including a 1 percent amendment fee of $2.7 million and $1.4 million of related bank and legal fees.

“We have greatly improved the company’s credit profile over the past year and are pleased we were able to complete this re-pricing, saving approximately $3.4 million of cash interest costs in 2013,” Dan Gallagher, TSI CFO, said in a statement.