HAMPTON, N.H.,
May 29,
2024 /PRNewswire/ -- Planet Fitness, Inc.
(NYSE: PLNT) (together with its subsidiaries, the "Company")
today 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 $2.0
billion of outstanding debt under its existing securitized
financing facility as of March 31,
2024.
- The Company intends to issue $600
million Series 2024-1 Fixed Rate Senior Secured Notes, Class
A-2 (the "Notes"), with the potential to upsize up to $800 million, 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 $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 consummation of the offering is subject to market and other
conditions and is anticipated to close in June 2024. However, there can be no assurance
that the Company will be able to successfully complete the
refinancing transaction on the terms described or at all.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other security.
The 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.
About Planet Fitness
Founded in 1992 in Dover, NH,
Planet Fitness is one of the largest and fastest-growing
franchisors and operators of fitness centers in the world by number
of members and locations. As of March 31,
2024, Planet Fitness had approximately 19.6 million members
and 2,599 stores in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia. The Company's mission is to enhance
people's lives by providing a high-quality fitness experience in a
welcoming, non-intimidating environment, which we call the
Judgement Free Zone®. More than 90% of Planet Fitness stores are
owned and operated by independent business men and women.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include the Company's
statements with respect to its ability to successfully complete the
refinancing transaction and potential share repurchases.
Forward-looking statements can be identified by words such as
"anticipate," "expect," "intend," "may," "will," and similar
references to future periods, although not all forward-looking
statements include these identifying words. Forward-looking
statements are not assurances of future performance. Instead, they
are based only on the Company's current beliefs, expectations and
assumptions regarding the future of the business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict
and many of which are outside of the Company's control. Actual
results and financial condition may differ materially from those
indicated in the forward-looking statements. Important factors that
could cause our actual results to differ materially include risks
and uncertainties associated with the Company's ability to
consummate the refinancing transaction on terms acceptable to the
Company or at all, capital markets conditions, the Company's
substantial increased indebtedness as a result of the transaction
and its ability to incur additional indebtedness or refinance that
indebtedness in the future, the Company's future financial
performance and the Company's ability to pay principal and interest
on its indebtedness, competition in the fitness industry,
competition in the fitness industry, the Company's and franchisees'
ability to attract and retain members, the Company's and
franchisees' ability to identify and secure suitable sites for new
franchise stores, changes in consumer demand, changes in equipment
costs, the Company's ability to expand into new markets
domestically and internationally, operating costs for the Company
and franchisees generally, availability and cost of capital for
franchisees, acquisition activity, developments and changes in laws
and regulations, our substantial increased indebtedness as a result
of our refinancing and securitization transactions and our ability
to incur additional indebtedness or refinance that indebtedness in
the future, our future financial performance and our ability to pay
principal and interest on our indebtedness, our corporate structure
and tax receivable agreements, failures, interruptions or security
breaches of the Company's information systems or technology,
general economic conditions and the other factors described in the
Company's annual report on Form 10-K for the year ended
December 31, 2023, the Company's
quarterly report on Form 10-Q for the quarter ended March 31, 2024, as well as the Company's other
filings with the Securities and Exchange Commission. In light of
the significant risks and uncertainties inherent in forward-looking
statements, investors should not place undue reliance on
forward-looking statements, which reflect the Company's views only
as of the date of this press release. Except as required by law,
neither the Company nor any of its affiliates or representatives
undertake any obligation to provide additional information or to
correct or update any information set forth in this release,
whether as a result of new information, future developments or
otherwise.
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SOURCE Planet Fitness, Inc.