• Fitness company in talks to raise new loan, preferred equity
•         Company has more than $1 billion of debt maturing next year

Luxury fitness company Equinox Holdings has been exploring options including raising a $1.3 billion loan in the private credit market to refinance upcoming debt maturities, according to people with knowledge of the matter.

The company, which operates high-end fitness clubs and owns the SoulCycle chain, has also been discussing raising around $400 million in preferred equity as part of the financing, said the people, who asked not to be identified discussing a private matter.

Equinox’s adviser Centerview Partners has been shopping the proposal to direct lending funds, the people said, adding that talks aren’t final and plans could change. The firm, which is backed by principals of billionaire Stephen Ross’s Related Cos., has a more than $1 billion first-lien term loan maturing in March.

Representatives for Equinox, Centerview and adviser Goldman Sachs Group Inc. declined to comment. Messages left with Related were not immediately returned. The Wall Street Journal earlier reported on the capital raise.

Equinox also has a revolving credit line maturing in January and a $200 million second-lien term loan due in September, according to a Moody’s Investors Service downgrade note from November. The company has seen its business recover in the years since pandemic lockdowns and the discussions for refinancing are advanced, one of the people said.

Last month, Equinox disclosed financial results that showed a rise in revenue to $272.6 million in a recent three-month period, from $215.8 million a year earlier, some of the people said. The results were helped by a hike in membership fees, they added. (Bloomberg)