Planet Fitness, Inc. reported that certain of its subsidiaries intend to complete a refinancing transaction, which would include issuing a new series of securitized debt under its existing securitized financing facility and repayment of the company’s existing Series 2018-1 Class A-2-II Notes.
The company had approximately $2.0 billion of outstanding debt under its existing securitized financing facility as of March 31, 2024.
Planet Fitness reported that it 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 as follows:
- Repay in full the Series 2018-1 Class A-2-II Notes, which, as of March 31, 2024, had a principal balance of approximately $591 million;
- Pay the transaction costs and fund the reserve accounts associated with the securitized financing facility; and
- General corporate purposes, which could include the company funding share repurchases.
The consummation of the offering is subject to market and other conditions and is expected to close in June 2024; however, there is no assurance that Planet Fitneww can complete the refinancing transaction successfully on the terms described or at all.
Image courtesy Planet Fitness
