U.S. Fitness club operator Fitness International LLC has proposed a $2 billion credit agreement, including a $350 million revolver, a $150 million term loan A, and a $1.5 billion term loan B. We expect the company to use proceeds to refinance existing debt, fully repurchase a current owner's equity interests in the company and a portion of another owner's equity interests, and to pay for transaction fees and expenses. We are assigning the company our 'B' corporate credit rating. In addition, we are assigning the company's proposed credit agreement our 'B' issue-level rating, with a recovery rating of '3'. The stable outlook reflects our expectation that adjusted leverage will remain above 5x over the next several quarters. On June 12,
