Planet Fitness Announces Refinancing Transaction Plans
Krissy Vann | Host, All Things Fitness and Wellness
Planet Fitness, Inc. has announced that its subsidiaries plan to complete a refinancing transaction, which includes issuing a new series of securitized debt under their existing securitized financing facility and repaying their existing Series 2018-1 Class A-2-II Notes.
As of March 31, 2024, Planet Fitness had approximately $2.0 billion in outstanding debt under its existing securitized financing facility. The Company intends to issue $600 million in Series 2024-1 Fixed Rate Senior Secured Notes, Class A-2, with the possibility of increasing this amount to $800 million, subject to market conditions and other factors.
The net proceeds from this securitized financing facility are expected to be used for several purposes: repaying 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; covering transaction costs and funding reserve accounts associated with the securitized financing facility; and supporting general corporate purposes, which may include funding share repurchases by the Company.
The offering's completion is contingent upon market and other conditions and is expected to close in June 2024. However, there is no assurance that the Company will be able to complete the refinancing transaction on the terms described or at all.
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