Fitness First has raised a new £115m debt facility that will be used to pay off an existing loan from shareholders and underpin the group’s development plans.

The finance comes from four banks – HSBC, Barclays, UBS and IKB – and marks the first time the group has successfully secured an external loan since its Company Voluntary Arrangement (CVA) in 2012.

The package comprises a £100m term loan (with a provision to increase up to £120m) and a £15m revolving credit facility. The transaction marks a milestone in the restoration of the company’s financial position and comes at a time when the group is undergoing a £270m global makeover, implementing a widespread training overhaul and planning major expansions in Asia.

“The signing of this bank facility at very competitive rates is further evidence of our continuing financial improvement and the growing confidence of external lenders in our overall strategy to reposition the Fitness First brand and offer,” said chief financial officer John Wartig.

“This new facility represents an ongoing low level of leverage but will materially reduce our cost of financing and release incremental funds for reinvestment behind the acceleration of our refurbishment program and rebrand initiatives.”