Planet Fitness, Inc. announced that it has completed its previously announced refinancing transaction. The new series of securitized notes consists of $800 million of Class A-2 senior secured notes issued in two tranches: Class A-2-I senior secured notes with an expected redemption date of five years, a principal amount of $425 million and a fixed interest rate of 5.765 percent per annum. $425 million and a fixed interest rate of 5.765 percent per annum, payable quarterly; and Class A-2-II senior secured notes with an expected redemption date of ten years, a principal amount of $375 million and a fixed interest rate of 6.237 percent per annum, payable quarterly. The class A-2 Notes are 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.
The proceeds from the placement of the 2024 Notes will be used to 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; to pay the transaction costs and fund the reserve accounts associated with the securitized financing facility; and for general corporate purposes, which may include funding share repurchases by the company.
Founded in 1992 in Dover, New Hampshire, Planet Fitness is one of the largest and fastest-growing franchisors and operators of health clubs in terms of members and locations. As of March 31, 2024, Planet Fitness had approximately 19.6 million members and 2.599 locations in all 50 states.
