NEW YORK, Jan. 15 /PRNewswire/ -- Equinox Holdings, Inc. (the "Company") announced today that it intends to commence a private offering to eligible purchasers, subject to market and other conditions, of $400 million principal amount of Senior Secured Notes due 2016 (the "Notes"). The Notes will be guaranteed on a senior secured basis by all of the Company's existing and future subsidiaries that guarantee the Company's new revolving credit facility, which will be entered into in connection with the issuance of the Notes (the "New Revolving Credit Facility"). The Notes and the guarantees thereof will be secured by a second-priority lien on the assets that secure the New Revolving Credit Facility, subject to certain limited exceptions. The net proceeds from the sale of the Notes and cash on hand, together with proceeds from the concurrent private sale of notes by the Company's indirect parent, Related Equinox Holdings II, L.L.C. ("Holdings") (which notes will not be guaranteed by the Company or any of its subsidiaries), are expected to be used to refinance the Company's and Holdings' existing notes.
The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.
This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Forward looking statements, which are based on management's current expectations, are generally identifiable by the use of terms such as "may," "will," "expects," "believes," "intends," "anticipates" and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.
SOURCE Equinox Holdings, Inc.