Town Sports International Holdings, Inc’s Acquisition of Studio Business from Flywheel Sports

Akin Gump Strauss Hauer & Feld LLP advised Flywheel Sports and Kennedy Lewis.

Town Sports International Holdings, Inc., one of the largest owners and operators of fitness clubs in the Northeast, announced today that it entered into an agreement to acquire the studio business of Flywheel Sports, Inc. The acquisition is expected to close in the first quarter of 2020, upon satisfaction of closing conditions. A team from Akin Gump advised Flywheel and Kennedy Lewis Investment Management, Flywheel’s current majority owner, in the transaction.

As part of the acquisition, Kennedy Lewis has agreed to provide seller financing in the form of a $25 million second lien loan. Kennedy Lewis has also agreed to assist with the refinancing of TSI’s existing term loan, with a follow-on commitment of up to $25 million of additional second lien debt.

The Akin Gump team was led by Daniel Fisher, co-leader of the firm’s integrated special situations group, and corporate partner Zachary Wittenberg, and included partners Fred Lee and Matt Bivona, counsel Erika Leon, and associates Natasha Burnett and Sanzana Faroque.

Involved fees earner: Matthew Bivona – Akin Gump; Natasha Burnett – Akin Gump; Daniel Fisher – Akin Gump; Erika Leon – Akin Gump; Frederick Taehoon Lee – Akin Gump; Zachary Wittenberg – Akin Gump;

Law Firms: Akin Gump;

Clients: Flywheel Sports; Kennedy Lewis Investment Management LLC;

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Author: Ambrogio Visconti