ABC Financial extends covenant-relief period for revolver

ABC Fitness Solutions has completed an amendment to its revolver to extend the covenant-relief period through April 1, 2022, according to an S&P Global Ratings report, which noted that the extension alleviates near-term concerns about a potential covenant breach.

Following the relief period, the springing first-lien net leverage covenant would be set at 6x, the rating agency added.

The company is also still required to maintain a minimum liquidity position of $10 million, with the option for an equity cure in line with the previous amendment from May 2020.

In the May 2020 amendment, ABC increased the size of its revolver by $25 million to $50 million, and obtained covenant relief.

The issuer also has a covenant-lite first-lien term loan due June 2025 (L+425, 1% Libor floor).

Thoma Bravo-backed ABC Financial, based in Sherwood, Ark., is a provider of club management and billing software to health and fitness clubs. Corporate issuer ratings are B-/Caa1.