Planet Fitness announces proposed refinancing transaction

Planet Fitness announced that certain of its subsidiaries intend to complete a refinancing transaction, which will include the issuance of a new series of securitized debt under their existing securitized financing facility and repayment of their existing Series 2018-1 Class A-2-II Notes. The company had approximately $2B of outstanding debt under its existing securitized financing facility as of March 31, 2024. The company intends to issue $600M in Series 2024-1 Fixed Rate Senior Secured Notes, Class A-2, with the potential to upsize up to $800M, subject to market conditions and other factors. The net proceeds of the securitized financing facility are expected to 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 $591M; 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.