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Hogan Lovells Shows its Stamina on Closing The Gym Group Acquisition

14 June 2013

LONDON, 14 June 2013 - Hogan Lovells has advised the mandated lead arrangers on the acquisition of The Gym, which closed on 13 June, further demonstrating its expertise in the area of unitranche lending.

The Hogan Lovells banking team advised Proventus Capital Partners as Unitranche provider and HSBC as super senior RCF provider in relation to Phoenix Equity Partner's acquisition of a majority stake in The Gym group.

The Gym was founded in 2008 and has over 38 locations in and around London and surrounding regions. In December 2012 it was officially recognized as one of the fastest growing companies in the UK in the Sunday Times Fast Track 100.

London banking partner Stuart Brinkworth led the Hogan Lovells team, assisted by senior associate Gert Raig and associate Julie Ngov. Banking partner Paul Mullen advised HSBC on intercreditor issues.

The deal demonstrated the growing influence of non-bank lenders in the European debt markets.

Phoenix Capital Partners were advised on the debt side by Eversheds (Patrick Davis).

Commenting on the deal Daniel Sachs from Proventus Capital Partners said:

"Proventus Capital Partners is delighted to provide the financing for Phoenix acquisition of The Gym, and its continued expansion. We take pride in creating direct lending solutions that are bespoke to the borrower's needs, and we see the agreed structure as very well suited for a growth company such as The Gym. We are also pleased to be able to close our second direct lending investment in the UK."

Commenting on the transaction, Stuart said:

"In tough economic times and an increasingly competitive market consumers are demanding value for money and consequently the budget gym market is growing significantly. This deal clearly reflects that environment and demonstrate how the new low cost model is leading the way. This in an interesting time for the health and fitness sector and we are pleased to have been involved in this important transaction".

 
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