EOS Fitness Refinances, Plans to Expand Club Footprint, with $120 Million Debt Facility

EOS Fitness, Phoenix, received a $120 million one-loan debt facility from New York-based lender Golub Capital, which will allow the health club company to refinance and ultimately expand its club footprint in the United States, the companies announced Jan. 7.

"We strongly believe in EOS's value proposition to customers and are excited by our future growth," EOS CEO Rich Drengberg said in a Jan. 8 media release. "We have assembled the best management team in the industry to provide a high level of service while growing rapidly."

EOS is a portfolio company of an investment partnership managed by private equity firm Bruckmann, Rosser, Sherrill & Co. (BRS), New York, and currently operates 30 locations across Phoenix, Las Vegas and Southern California. EOS is based on a low-price membership model and offer a range of amenities such as personal training, group classes, cycling studios, swimming pools, turf functional training areas and a signature Kids' Club.

"BRS has a longstanding track record of identifying companies in the retail space which offer consumers high value," Greg Cashman, senior managing director at Golub Capital, said in a Jan. 7 media release. "We have a strong relationship with the BRS team, having financed several prior consumer retail investments, and were able to provide a flexible financing solution to help EOS grow."

Golub Capital, founded in 1994, currently claims $25 billion in capital under management. Its Middle Market Lending group provides financing for middle market, private-equity-backed transactions primarily in the software, technology, healthcare, consumer, restaurant and retail sectors.

BRS, founded in 1995, holds combined capital invested of $1.2 billion and is focused in investing in lower-middle market consumer goods and services businesses.

Dechert LLP acted as legal advisor to BRS during the lending process.