...NEW YORK (S&P Global Ratings) March 22, 2017--S&P Global Ratings today raised its issue-level ratings on U.S. fitness club operator Fitness International LLC 's term loan B due July 2020, revolving credit facility due April 2020, and term loan A due April 2020 to '##-' from 'B+' and revised the recovery rating to '2' from '3'. The '2' recovery rating reflects our expectation for substantial (70% to 90%; rounded estimate: 70%) recovery for lenders in the event of a payment default. The company is seeking an amendment to its credit agreement to reduce pricing on its existing term loan B, and plans to prepay $100 million of the term loan B using revolver borrowings. The prepayment will reduce the outstanding amount of the term loan B to $1,031 million. This transaction will improve recovery prospects for secured lenders because there will be less secured debt outstanding in our simulated default scenario as a result of the term loan prepayment. We already assume that the revolver will be 85%...
