Praesidian Capital has finalised a debt for equity swap to acquire Meridian Sports Clubs through bankruptcy, according to a statement released last week.
The mezzanine provider granted Meridian a $7.5 million term loan and a $4.5 million credit facility tor replace $10 million in senior secured debt that Praesidian invested in the health club company in 2010, according to a spokesperson. The duration and terms of the loan were not disclosed.
“We are pleased to have completed this process in less than eight months and to have achieved our main objective – the deleveraging of the company so that it has a strong financial structure for the future,” Praesidian founder Jason Drattell said in a statement.
Meridian declared bankruptcy last year while continuing operations. The company had suffered from “residual balance sheet issues created during the past four recessionary years”, according to an industry report.
New York-based Praesidian was founded in 2002 and manages approximately $700 million in committed capital. The firm specialises in lower mid-market and mid-market deals, typically investing between $5 million and $20 million per deal in companies with enterprise values between $20 million and $150 million.
Last week, Praesidian exited $7.6 million in senior debt from K1 speed for an undisclosed return. The firm made its initial investment in the US go-kart track operator 2010 to fund the company’s expansion strategy.
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