On the 12th of June 2018, Next Gen Health and Lifestyle Clubs announced a new 5-year, $45 million bond through FIIG Securities. The proceeds from the transaction are expected to refinance existing bank facilities.
The securities are structured as fixed-rate, senior secured notes and distributions are direct and paid on a quarterly basis. The securities will be issued on the 22nd of June 2023 and are priced at fixed coupon of 7.90% p.a.
Over the final three years (2021-2023), the bonds will amortise to $30 million at maturity (22 June 2023). Investors may request early redemption of the notes on the occurrence of a Change of Control event at 101% of par value together with any accrued interest.
Next Gen is an owner / operators of six premium health clubs across Australia and New Zealand. The network accommodates 28,000 members and generated revenue and EBITDA of $42.1 million and $12.1 million respectively in 2017.