Planet Fitness Announces $600M Refinancing Plan

Planet Fitness, Inc. has announced a proposed refinancing transaction, with certain subsidiaries looking to complete the issuance of a new series of securitized debt under their existing securitized financing facility and the repayment of their existing series 2018-1 class A-2-II notes.

As of March 31, 2024, the company had approximately $2.0 billion of outstanding debt under its existing securitized financing facility. The company intends to issue $600 million series 2024-1 fixed rate senior secured notes, class A-2, with the potential to upsize up to $800 million, subject to market conditions and other factors.

The net proceeds of the securitized financing facility are expected to be used to repay in full the series 2018-1 class A-2-II notes, which had a principal balance of approximately $591 million as of March 31, 2024, as well as to pay the transaction costs and fund the reserve accounts associated with the securitized financing facility. Additionally, the funds may be allocated for general corporate purposes, which may include funding share repurchases by the company.

The proposed refinancing transaction is subject to market and other conditions and is anticipated to close in June 2024. However, there is no assurance that the company will be able to successfully complete the refinancing transaction on the terms described or at all.

Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the world by the number of members and locations. As of March 31, 2024, Planet Fitness had approximately 19.6 million members and 2,599 stores in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia. The market has reacted to these announcements by moving the company's shares 0.5% to a price of $61.08. Check out the company's full 8-K submission here.

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