Bally Total Fitness disclosed in an 8-K with the Securities and Exchange Commission last week that is in the process of renewing a $155 million receivables facility, currently funded on a revolving basis and held in an asset-backed commercial paper conduit. The revolving period for this structure, which launched in November 2001 as the series 2001-1 certificates of H&T Master Trust, ends in December 2003, the company stated.
The receivables in the Bally securitization are associated with health club membership fees.
Currently, only the $155 revolving facility is outstanding. Bally believes it can extend the revolving period for $100 million of the facility through June 2005, and begin amortizing the remaining $55 million in September.
Bally uses an 8.50% interest rate cap on the Series 2001-1 accounts receivable-backed variable funding certificates.
The H&T 2001-1 series is not Bally's first securitization. The health club giant issued at least one series - 1996-A - of roughly the same size and in a senior/subordinate structure, managed by the pre-merger Chase Securities.