King Street Capital and CenterBridge Partners

Goodmans LLP acted for King Street Capital and CenterBridge Partners, as lenders, in connection with a credit agreement (the “Credit Agreement”) with a private owner of hundreds of fitness facilities in Canada, as borrower (the “Borrower”), in the refinancing of the Borrower’s existing credit facilities and establishing a CAD$625 million term loan and $75 million delayed term loan.

In connection with the Credit Agreement, the Borrower’s three existing credit facilities were paid out and discharged. The Borrower also has the ability to obtain up to an additional CAD$100 million of incremental financing pursuant to the terms of the Credit Agreement.

This financing was a unique combination of a sector heavily impacted and shut down due to COVID restrictions receiving discounted financing due to market liquidity and analyst expectation that the pandemic was receding. This was especially interesting as the Borrower had earlier that year entered into an amended credit agreement but was able to take advantage of market conditions to receive one of the largest dollar value loans in its sector.