Planet Fitness Prices $800 Million Securitized Financing Facility

Core Viewpoint - Planet Fitness, Inc. has announced the pricing of $800 million in Series 2024-1 Class A-2 Fixed Rate Senior Secured Notes, which will be used for refinancing existing debt and general corporate purposes [1][5]. Group 1: Financial Details - The Class A-2 Notes consist of two tranches: Class A-2-I with a principal amount of $425 million and a fixed interest rate of 5.765% per annum, and Class A-2-II with a principal amount of $375 million and a fixed interest rate of 6.237% per annum [1]. - The anticipated repayment term for Class A-2-I is five years, while Class A-2-II has a ten-year repayment term [1]. - The transaction is expected to close around June 12, 2024, subject to various closing conditions [2]. Group 2: Company Overview - Founded in 1992, Planet Fitness is one of the largest and fastest-growing fitness center franchisors and operators globally, with approximately 19.6 million members and 2,599 locations as of March 31, 2024 [3]. - The company's mission is to provide a high-quality fitness experience in a welcoming environment, known as the Judgement Free Zone® [3]. - Over 90% of Planet Fitness stores are owned and operated by independent business owners [3]. Group 3: Use of Proceeds - Proceeds from the Class A-2 Notes will be used to repay the Series 2018-1 Class A-2-II Notes, which had a principal balance of approximately $591 million as of March 31, 2024 [5]. - Additional uses include covering transaction costs and funding reserve accounts related to the securitized financing facility, as well as general corporate purposes, which may include share repurchases [5].