SEC clears Town Sports in accounting investigation
Town Sports International Holdings (Nasdaq: CLUB) reported it has been cleared in an investigation conducted by the SEC for the last three years in regard to questions about deferred costs.
According to a filing, the letter from the SEC said its staff did not intend to recommend any enforcement action by the SEC against the company, after initiating a formal investigation in September 2009.
The investigation related to the company's deferral of certain payroll costs incurred during the sale of memberships in its clubs and the time period utilized by Town Sports for the amortization of the deferred costs into expense and initiation fees into revenue.
Since May 2008, the company said it had been providing documents and testimony on a voluntary basis in response to an informal inquiry by the SEC in relation to these same accounting matters. The letter from the SEC confirmed the completion of its investigation of all related accounting matters.
Amer Sports takes out loan
Amer Sports, parent of Precor, said it has taken a EUR 30 million (USD $39.5 million) Schuldschein loan targeted at international investors.
The proceeds of the three-year loan will be used for refinancing and general corporate purposes. The loan has both fixed and floating rate tranches.
Landesbank Hessen-Thüringen acted as a bookrunner for the transaction, the company said.
--Compiled by Wendy Geister
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