Planet Fitness, Inc. priced $800 million of Series 2024-1 Class A-2 fixed rate senior secured notes, representing an upsize from its initially planned offering.
The offering consisted 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 percent 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 percent per annum, payable quarterly.
The Class A-2 notes are expected to be issued by Planet Fitness Master Issuer LLC, a limited-purpose, bankruptcy remote, indirect subsidiary of Planet Fitness, Inc., in a privately placed securitization transaction.
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.
On May 20, Planet Fitness reported that it intended to issue $600 million Series 2024-1 Fixed Rate Senior Secured Notes, Class A-2, with the potential to upsize up to $800 million.
The fitness chain had approximately $2.0 billion of outstanding debt under its existing securitized financing facility as of March 31, 2024.
Image courtesy Planet Fitness
