RM Secured Direct Lending to support Energie Fitness management buyout
By Josh White
Date: Wednesday 24 Jun 2020
(Sharecast News) - RM Secured Direct Lending (RMDL) updated the market on its £7m senior secured loan to UK and Ireland low-cost gym franchisor Énergie Fitness on Wednesday.
The London-listed firm said its investment manager RM Funds, Énergie's executive management team, and its sponsor, had been in negotiations over the need for additional working capital to support the business during the period of government-imposed closure.
RM Funds had "consulted extensively" with the directors of Énergie to work through a number of scenarios, with a view to maximising value for all stakeholders while the business navigated the "unprecedented" Covid crisis.
RMDL said on Wednesday that as a result of those consultations, it was supporting a management buyout of the business.
The buyout was being led by the chain's founder Jan Spaticchia, who would reacquire the business, with backing from RMDL and a consortium of investors, including several of Énergie's original founder-shareholders.
Énergie Global Franchising had been formed to acquire the business, trade and assets of the Énergie Group, with a "significantly strengthened" executive team, balance sheet and a new corporate structure.
"The acquisition and recapitalisation of the business preserves RMDL's senior secured investment, enhances RMDL's economic interest, secures jobs and provides certainty of funding, allowing Jan and the management team to restore the growth of the business and brand, once gyms are allowed to reopen," said RM Funds portfolio manager Pietro Nicholls.
"This demonstrates the benefits of RMDL's strategy to provide tailored, secured debt solutions to high quality businesses as well as the ability of the investment manager to act flexibly and work with borrowers to find resolutions and preserve the interests of RMDL's shareholders."
At 1045 BST, shares in RM Secured Direct Lending were down 2.69% at 75.9p.
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