U.S. fitness club operator Fitness International LLC plans to amend and reset commitment amounts under its existing senior secured credit facility to an aggregate commitment of $1.85 billion (consisting of a $337.5 million revolver due 2020, a $337.5 million term loan A due 2020, and a $1.2 billion term loan B due 2020). It will use proceeds from incremental borrowings under the amended facility to buy back a portion of minority financial sponsor common equity stakes. A portion of the remaining minority common equity stakes are being converted to preferred equity, which we view as debtlike obligations because there are terms present in the preferred equity that could ultimately result in redemption. We are raising our corporate credit rating on
