Minority Private Equity Firm Corlex Capital Closes Debt Refinancing For Largest Anytime Fitness Franchisee
Photo Credit: Cam Kirk

Minority Private Equity Firm Corlex Capital Closes Debt Refinancing For Largest Anytime Fitness Franchisee

Corlex Capital — a minority-owned private equity firm founded by Jason Bedasse — proved that they weren’t afraid to flex their financial muscle with their recent WingStop deal. Now, it’s upping the ante with a new deal.

In a press release, Corlex Capital announced that they’ve secured the refinancing and growth capital for Bandon Holdings, which is the largest franchisee of the 24-hour fitness club, Anytime Fitness.

The growth capital that Corlex will provide for Bandon will help grow the franchise further — and this growth capital, according to Corlex’s vice president, has proved elusive to get in the wake of COVID-19.

“The COVID-19 pandemic has presented fiscally fit companies in the gym industry, such as Bandon, with attractive opportunities to grow their businesses,” said Jon Marchel, Corlex’s vice president who led the financing, in a statement. “However, accessing growth capital during a time of industry disruption can be challenging and requires industry experience, trusted relationships with lenders, and subject matter expertise.”

Based in Minnesota, Anytime Fitness currently has more than 4,000 franchised locations, according to its website. While it’s unclear if the Corlex deal will include more franchised locations, what’s clear is that growth is at the top of the priority list for the Atlanta-based firm.

Corlex is a trusted financing advisor to middle-market companies and private equity sponsors. Working with Bandon’s management team and private equity sponsor, Corlex was able to source a financing package that refinanced an existing term loan and revolving line of credit, plus offered the company a delayed-draw term loan which is available to fund pending and future acquisitions.

States such as New York have slowly begun the process of reopening gyms (with additional regulations in designated zones), which could prove to be promising for potential gym franchisees. It could also prove to be promising for Anytime Fitness now and in the future, as well.