Xponential Fitness, Inc. entered into a new credit agreement to refinance the company’s existing debt with a new five-year term loan facility of $525 million. The new credit agreement also provides for a revolving credit facility with a borrowing capacity of $25 million.
“This refinancing not only allows the Company to decrease interest payments by up to one percent if it achieves certain financial milestones, but it also eliminates the Company’s preferred stock, which was convertible into approximately 8.2 million shares of common stock,” said John Meloun, chief financial officer of Xponential Fitness. “We are now even better positioned to support our strategic priorities and create long-term value for our shareholders moving forward.”
Proceeds from the term loan will be used to refinance, in full, Xponential’s existing credit facility, to fund the repurchase of the Company’s outstanding convertible preferred stock, and to pay fees and expenses in connection with the foregoing. Borrowings under the revolving credit facility will be used for working capital and general corporate purposes.
Xponential Fitness’ portfolio includes Club Pilates, YogaSix, Pure Barre, and BFT.
Image courtesy Xponential Fitness
