Planet Fitness Prices $800 Million Securitized Financing Facility
Posted: June 7, 2024 in Chains
Planet Fitness
HAMPTON, N.H. – Planet Fitness, Inc. (NYSE: PLNT) (together with its subsidiaries, the “Company”) announces that it has priced $800 million of Series 2024-1 Class A-2 Fixed Rate Senior Secured Notes (the “Class A-2 Notes”), which 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 5.765% 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% per annum, payable quarterly. The Class A-2 Notes are expected to be issued by Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, indirect subsidiary of Planet Fitness, Inc. in a privately placed securitization transaction.
The proceeds from the expected sale of the Class A-2 Notes will be used as follows:
- 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.
The Company expects the Class A-2 Notes transaction to close on or around June 12, 2024, subject to satisfaction of various closing conditions. There can be no assurance regarding the timing of closing or that the sale of the Class A-2 Notes will be completed.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Class A-2 Notes or any other security. The Class A-2 Notes to be offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.
