Town Sports International Holdings, Inc. (TSI) announced credit ratings upgrades by Standard & Poor’s and Moody’s on April 3, 2012.
“We are pleased with the ratings upgrades we have recently received by both Standard and Poor’s and Moody’s,” said Daniel Gallagher, the CFO of TSI. “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.”
On March 22, 2012, Standard & Poor’s Ratings Services raised its corporate rating on TSI to a “B+” to a “B” with a stable outlook. Additionally, Standard & Poor’s raised the issue-level rating on TSI’s $350 million credit facility, consisting of a $50 million revolver due by 2016, and a $300 million term loan due by 2018, to “B+” from “B.”
Credit ratings are opinions of a rated entity’s ability to meet its ongoing obligations. Credit ratings are no 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.
