Core Viewpoint - Planet Fitness, Inc. has announced the pricing of $750 million in Series 2025-1 Class A-2 Fixed Rate Senior Secured Notes, which will be used for refinancing and general corporate purposes [1][2]. Group 1: Financial Details - The Class A-2 Notes consist of two tranches: Class A-2-I with a principal amount of $400 million and a fixed interest rate of 5.274% per annum, and Class A-2-II with a principal amount of $350 million and a fixed interest rate of 5.649% per annum [1]. - The anticipated repayment terms for the Class A-2-I Notes is five years, while the Class A-2-II Notes have a seven-year term [1]. - The company also plans to enter into a $75 million variable funding note facility, in addition to the existing $75 million 2022-1 Variable Funding Senior Secured Notes [1]. 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 20.7 million members and 2,795 clubs as of September 30, 2025 [4]. - The company's mission is to enhance lives by providing a high-quality fitness experience in a welcoming environment known as the Judgement Free Zone® [4]. - More than 90% of Planet Fitness clubs are owned and operated by independent business owners [4].

Financial Data and Key Metrics Changes - Total assets grew 21% year over year and 9% sequentially to just shy of CAD 5.5 billion [13] - Consolidated revenue reached a record CAD 31.6 million, up 17% year over year and 5% sequentially [14] - Reported net income was CAD 6.6 million, with adjusted net income of CAD 9.7 million excluding restructuring costs [15] Business Line Data and Key Metrics Changes - Revenue for Canadian Banking operations was CAD 26.6 million, up 4% sequentially [15] - U.S. Banking operations revenue was CAD 3.1 million, a 25% sequential increase [16] - The credit asset portfolio grew to a record CAD 4.78 billion, with the receivable purchase program increasing 15% year over year [18] Market Data and Key Metrics Changes - Canadian consumer spending showed resilience despite economic uncertainties, contributing to growth in credit assets [7] - The Canadian insolvency deposit business remained stable, with expectations of increased deposits due to economic conditions [35] Company Strategy and Development Direction - The company is realigning its corporate structure to that of a standard U.S. bank, which is expected to enhance shareholder value and reduce corporate costs [5][22] - Expansion of the receivable purchase program in both the U.S. and Canada is a key focus, with the introduction of a securitized financing solution [10][21] - The company is advancing its digital deposit receipt initiative, which aims to provide interest-bearing stable coins that are federally insured [23][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a fiscal year-end target of CAD 290 million for U.S. RPP funding [21] - The outlook for Canadian RPP business is improving with the addition of securitization capabilities [21] - The company anticipates a breakout year in 2026, driven by growth in U.S. operations and digital deposit initiatives [20] Other Important Information - Non-interest expenses for Q3 included CAD 4.2 million related to corporate realignment, with expectations of similar charges in Q4 [15][56] - The net interest margin on credit assets was 2.55%, reflecting a 6% year-over-year increase [19] Q&A Session Summary Question: What were balances at quarter end for the US RPP program? - The balance was approximately CAD 125 million [29] Question: How many partners are generating loans currently? - Currently, only WaterCrest is funding loans, but there are several partners expected to enter the securitization program soon [30][31] Question: How will the securitized financing offering impact growth? - The securitized financing offering is expected to drive the majority of growth in the near term, with enhancements planned for the traditional RPP program [32] Question: What is the outlook for Canadian insolvency deposits? - The company expects an increase in insolvency deposits due to a decline in GDP, which may lead to more insolvencies [35] Question: Can you provide insight on the NIM trajectory going forward? - The company anticipates a flat net interest margin for the current quarter, with potential for slight increases in the future [45]

Group 1 - VersaBank has added two new partners to its Receivable Purchase Program (RPP) in Canada, including its first partner under the newly expanded RPP to include a securitized financing offering [1][2] - The first funding transaction for the RPP Securitization partner has been completed, with funding for the other new partner expected to commence soon [1][2] - The addition of these partners enhances VersaBank's position in Canada and is expected to significantly expand its addressable market in both Canada and the United States [2] Group 2 - VersaBank's RPP Securitized Financing strategy will focus on investment in senior-level tranches of target securitized credit assets, typically AAA-rated, and will establish a platform for securitization of assets from financing partners [2] - The strategy aims to meet the current demand from larger financing companies for lower-cost securitized financing in the existing interest rate environment [2] Group 3 - VersaBank operates a branchless, digital, business-to-business banking model, leveraging proprietary technology to serve underserved segments of the banking industry [3] - The bank has successfully launched its Receivable Purchase Program funding solution for point-of-sale finance companies in the US market, building on nearly 15 years of success in Canada [3] - VersaBank also owns DRT Cyber Inc., a leader in cybersecurity services, and Digital Meteor Inc., which focuses on next-generation digital assets for the banking and financial community [3]