Town Sports International Holdings, Inc. Announces Ratings Agency Upgrades
-
Standard & Poor's raises corporate credit rating on Town Sports to B+
from B; outlook stable
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Moody's upgrades Town Sports' CFR to B1 from B2; outlook stable
NEW YORK--(BUSINESS WIRE)--
Town Sports International Holdings, Inc. ("TSI" or the "Company")
(NASDAQ: CLUB), a leading owner and operator of health clubs located
primarily in major cities from Washington, DC north through New England,
operating under the brand names "New York Sports Clubs," "Boston Sports
Clubs," "Washington Sports Clubs" and "Philadelphia Sports Clubs," today
announced credit ratings upgrades by Standard & Poor's and Moody's
respectively.
On March 22, 2012, Standard & Poor's Ratings Services raised its
corporate credit rating on Town Sports International Holdings Inc. to
'B+' from 'B' with a stable outlook. At the same time, Standard &Poor's
raised the issue-level rating on Town Sports' $350 million credit
facility, consisting of a $50 million revolver due 2016 and a $300
million term loan due 2018, to 'B+', from 'B'.
On April 2, 2012, Moody's Investors Service upgraded Town Sports
International Holdings, Inc.'s corporate family rating to B1 from B2 and
the probability of default rating to B2 from B3. Moody's also upgraded
Town Sports International, LLC's (wholly-owned subsidiary of Town Sports
International Holdings, Inc) senior secured credit facility rating to
Ba3 from B1. The speculative grade liquidity rating was upgraded to
SGL-1 from SGL-2. The ratings outlook is stable.
Daniel Gallagher, Chief Financial Officer of TSI stated, "We are pleased
with the ratings upgrades we have recently received by both Standard and
Poor's and Moody's. We have been generating EBITDA growth and increases
in free cash flow, while consistently reducing our debt and improving
our credit and leverage metrics. Many improvements were made in the
business in 2011 and we remain excited about our future prospects."
Credit ratings are opinions of a rated entity's ability to meet its
ongoing obligations. Credit ratings are not recommendations to buy, sell
or hold securities and are subject to revision or withdrawal at any time
by the assigning rating agency. Each agency's rating should be evaluated
independently of any other agency's rating.
Forward-Looking Statements:
Statements in this release that do not constitute historical facts,
including, without limitation, statements regarding future financial
results and performance and potential sales revenue and other statements
that are predictive in nature or depend upon or refer to events or
conditions, or that include words such as "expects," "anticipated,"
"intends," "plans," "believes," "estimates" or "could", are
"forward-looking" statements made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to various risks and
uncertainties, many of which are outside the Company's control,
including, among others, the level of market demand for the Company's
services, economic conditions affecting the Company's business, the
geographic concentration of the Company's clubs, competitive pressures,
the ability to achieve reductions in operating costs and to continue to
integrate acquisitions, environmental initiatives, any security and
privacy breaches involving customer data, the application of Federal and
state tax laws and regulations, the levels and terms of the Company's
indebtedness, and other specific factors discussed herein and in other
releases and public filings made by the Company (including the Company's
reports on Forms 10-K and 10-Q filed with the Securities and Exchange
Commission). The Company believes that all forward-looking statements
are based on reasonable assumptions when made; however, the Company
cautions that it is impossible to predict actual results or outcomes or
the effects of risks, uncertainties or other factors on anticipated
results or outcomes and that, accordingly, one should not place undue
reliance on these statements. Forward-looking statements speak only as
of the date they were made, and the Company undertakes no obligation to
update these statements in light of subsequent events or developments.
Actual results may differ materially from anticipated results or
outcomes discussed in any forward-looking statement.
About Town Sports International Holdings, Inc.:
New York-based Town Sports International Holdings, Inc. is a leading
owner and operator of fitness clubs in the Northeast and mid-Atlantic
regions of the United States and, through its subsidiaries, operated 160
fitness clubs as of December 31, 2011, comprising 108 New York Sports
Clubs, 25 Boston Sports Clubs, 18 Washington Sports Clubs (two of which
are partly-owned), six Philadelphia Sports Clubs, and three clubs
located in Switzerland. These clubs collectively served approximately
523,000 members. For more information on TSI, visit http://www.mysportsclubs.com.
From time to time we may use our Web site as a channel of distribution
of material company information. Financial and other material
information regarding the Company is routinely posted on and accessible
at http://www.mysportsclubs.com.
In addition, you may automatically receive email alerts and other
information about us by enrolling your email by visiting the "Email
Alert" section at http://www.mysportsclubs.com.
Town Sports International Holdings, Inc., New York
Investor Contact:
212-246-6700
extension 1650
Investor.relations@town-sports.com
or
ICR,
Inc.
Joseph Teklits/Farah Soi
203-682-8390
farah.soi@icrinc.com
Source: Town Sports International Holdings, Inc.
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