Latamfit Chile secures $120m credit facility

The structure features $90 million in an original tranche and an incremental tranche of up to $30 million available within 12 months.

The loan will be used to finance the rollout of new gyms and refinance existing indebtedness.

The cross-border credit support package combines a Brazilian-law guarantee and joint and several co-obligations granted by Smart Fit Brasil, complemented by a separate New York-law guarantee.

The transaction optimizes Smart Fit Chile’s capital structure and reinforces its continued leadership as Latin America’s and Chile’s largest fitness operator.

This transaction is pivotal for Smart Fit Chile that also refinances existing loans, as well as funding new gym openings, consolidating the brand’s leadership with more than 100 locations nationwide. The loan is also innovative for its multi-tranche architecture, cross-collateralized security and a growth-aligned covenant package that balances operational flexibility with creditor protection.

For the market, it sets a benchmark for corporate financings in the fitness sector; for our team, it required tight coordination across lenders, regulatory compliance and security work streams under timelines, according to Chilean law firm Bofill Mir Abogados, which acted as the borrower’s lead counsel on the negotiation and closing of the financing, leading strategy and execution across term sheet and loan documentation, and coordinating four lending institutions and parallel workstreams in three jurisdictions.

The firm also delivered simultaneous signings and closings under a compressed timetable.

The firm’s team was led by partner Feliciano Tomarelli, with senior associates Paula Donoso and Max Vial.

Garrigues Chile acted as counsel to the lenders, Tauil & Chequer Advogados acted as Brazilian counsel to the lenders, Mayer Brown acted as New York counsel to the lenders and Gibson Dunn & Crutcher acted as New York counsel to the borrower.