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:

  1. 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.
  2. Pay the transaction costs and fund the reserve accounts associated with the securitized financing facility.
  3. For general corporate purposes, which may include the company funding share repurchases.

Image courtesy Planet Fitness