Planet Fitness, Inc. has completed its previously announced refinancing transaction.
The new series of securitized notes (2024 Notes) consist of $800 million Class A-2 Senior Secured Notes issued in two tranches: Class A-2-I Senior Secured Notes with an anticipated repayment date of five years, with a principal amount of $425 million and a fixed interest rate of 5.765 percent per annum, payable quarterly and the Class A-2-II Senior Secured Notes with an anticipated repayment date of ten years, with a principal amount of $375 million and a fixed interest rate of 6.237 percent per annum, payable quarterly.
The company will use the proceeds from the placement of the 2024 Notes for the following purposes:
- 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.
- For general corporate purposes, which may include the company funding share repurchases.
Image courtesy Planet Fitness
