Deutsche Bank has set a call for 11:00 a.m. EDT tomorrow to launch an amendment for Town Sports International that would allow the New York fitness club operator to fund a special dividend with a new $75 million add-on term loan, according to sources.

Institutional investors own 75% of outstanding Town Sports stock. Farallon Capital Management is the largest stockholder, owning about 4 million shares, or a 16% stake. Goldman Sachs Group is the next-largest, with 1.7 million shares, or a 7% stake.

In August, Town Sports repriced a $271 million term loan to L+450, with a 1.25% LIBOR floor, from L+550 and a 1.5% floor. Deutsche, Bank of America Merrill Lynch, and KeyBanc Capital Markets arranged the transaction. As part of the deal arrangers refreshed a 101 one-year soft-call premium on the term loan.

Issuer and loan ratings are B+/B1 currently. Revenue was $467 million for the fiscal year ended Dec. 31, 2011. – Kelly Thompson