Planet Fitness Prices $800M Senior Secured Notes

Planet Fitness, Inc. has announced the pricing of $800 million of series 2024-1 Class A-2 fixed rate senior secured notes. This consists of two tranches: the Class A-2-I senior secured notes with an anticipated repayment term of five years, with an aggregate principal amount of $425 million and a fixed interest rate of 5.765% per annum, payable quarterly, and the Class A-2-II senior secured notes with an anticipated repayment term of ten years, with an aggregate principal amount of $375 million and a fixed interest rate of 6.237% per annum, payable quarterly.

The proceeds from the sale of the Class A-2 notes will 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, to pay the transaction costs and fund the reserve accounts associated with the securitized financing facility, and for general corporate purposes, which may include funding share repurchases by the company.

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 company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which they call the Judgement Free Zone®. More than 90% of Planet Fitness stores are owned and operated by independent business men and women. The market has reacted to these announcements by moving the company's shares 3.0% to a price of $67.9. For more information, read the company's full 8-K submission here.

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