NORWALK, Conn.--(BUSINESS WIRE)--Aug. 17, 2006--GE Capital Markets and Comerica Bank announced today they are Co-lead Arrangers for $105 million of senior secured credit facilities to support the refinancing of Fitness Quest Inc. ("Fitness Quest"), a portfolio company of J. W. Childs Associates, L.P. ("JWC"). GE Commercial Finance Global Sponsor Finance will serve as Syndication Agent and Comerica Bank will serve as Administrative Agent.
The financing consists of a $50 million 5-year secured revolving credit facility and a $55 million 5-year senior secured term loan. Fitness Quest will use the proceeds of the financing to refinance existing debt, and pay dividends to common shareholders.
Fitness Quest is a leading marketer and distributor of home fitness and healthy living products. The Company's product line includes home fitness products marketed under brands such as Total Gym(R), Ab Lounge(R), Gazelle, and BOSU(R) Balance Trainer. The Company's products include exercise bicycles, elliptical machines, weight systems, core fitness products, steppers and rowers. Fitness Quest also has the exclusive right to sell New Balance(R) branded fitness equipment in the United States and currently sells elliptical and bicycle product lines to home fitness consumers through the retail channel. Fitness Quest's marketing strategy emphasizes the development of both the direct response and retail channels to create strong brand recognition and to maximize revenues over the lifecycle of the products.
"Our deal team's flexibility in structuring the transaction, and GE's diverse distribution capabilities provided an optimal capital structure solution for Fitness Quest," said Jason Van Dussen, Senior Vice President, GE Capital Markets.
Robert Schnabel, CEO of Fitness Quest, said: "Given our strong multi-channel marketing and distribution strategy, we expect this successful refinancing will allow us to continue with our growth strategy for both our existing product line and new product introductions. We appreciate how GE has proven that it is responsive and supportive of Fitness Quest and our management team's plans for growth at Fitness Quest."
About J. W. Childs Associates, L.P.
J. W. Childs Associates, L.P. ("JWC") is a private equity firm based in Boston, Massachusetts specializing in leveraged buyouts and recapitalizations of middle-market growth companies. Since 1995, JWC has invested in 38 companies with a total transaction value of over $8 billion. J. W. Childs Equity Partners III, L.P., is an investment fund with total committed capital from financial institutions, pension funds, insurance companies and university endowments of $1.75 billion.
About GE Commercial Finance Global Sponsor Finance
With over $8 billion in assets, and offices in Boston, Chicago, Dallas, London, Los Angeles, New York, and San Francisco, GE Commercial Finance Global Sponsor Finance represents a "one-stop" source for the comprehensive range of GE's lending and other structured financial services offered to the private equity sponsor market. For more information, please visit www.gegsf.com.
About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $190 billion and is headquartered in Stamford, Connecticut. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customer in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's website at www.ge.com.
Contacts
GE Commercial Finance, Norwalk
Ned Reynolds, 203-229-5717
[email protected]
Britta Kons
GE Healthcare Global Services
[email protected]
1-203-400-1892