Planet Fitness Inc. announced that it has priced $900 million of Series 2022-1 Class A-2 fixed-rate senior secured notes.
The Class A-2 Notes consist 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 3.251 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 $475 million and a fixed interest rate of 4.008 percent per annum, payable quarterly.
The Class A-2 Notes are expected to be issued by Planet Fitness Master Issuer, a limited-purpose, bankruptcy-remote, indirect subsidiary of Planet Fitness, Inc., in a privately placed securitization transaction.
In addition to the Class A-2 Notes, the refinancing transaction also includes a $75 million variable funding note facility, which replaces the Master Issuer’s existing variable funding note facility. After closing, all $75 million of the Variable Funding Notes will be drawn.
The proceeds from the expected sale of the Class A-2 Notes will be used as follows:
- The Master Issuer will use a portion of the net proceeds for the repayment in full of approximately $556.3 million in aggregate principal amount of the Series 2018-1 Class A-2-I Notes (together with any accrued and unpaid interest on such Series 2018-1 Class A-2-I Notes);
- to pay the transaction costs and fund the reserve accounts associated with the securitized financing facility; and
- to fund a portion of the previously announced acquisition of Sunshine Fitness in an amount up to $325 million.
Photo courtesy Planet Fitness
