HAMPTON, N.H., Feb. 10, 2022 /PRNewswire/ — Planet Fitness, Inc. (NYSE:PLNT) (along with its subsidiaries, the “Company”) at present introduced that it has accomplished its beforehand introduced acquisition of Sunshine Fitness Growth Holdings, LLC (“Sunshine Fitness”) and refinancing transaction.

Sunshine Fitness was the primary franchisee within the Planet Fitness system and has been backed by TSG Consumer Partners since 2017. Sunshine Fitness operates 114 areas in Alabama, Florida, Georgia, North Carolina, and South Carolina that are actually mixed into the present Planet Fitness company-owned portfolio, which is predominantly situated within the Northeast. Shane McGuiness, co-founder and CEO of Sunshine Fitness, who has been an proprietor and operator within the Planet Fitness system for almost 20 years, will now function President, Corporate Clubs, and can oversee operations of the mixed company retailer portfolio.

“While many manufacturers are retracting, we imagine that there is large long-term untapped alternative for our model to assist folks start their wellness journey, which is why we’re making strategic investments such because the acquisition of Sunshine Fitness, considered one of our best-performing franchisees within the system,” mentioned Chris Rondeau, Chief Executive Officer of Planet Fitness. “We now personal greater than 200 company shops, or roughly 10 p.c of our complete system, which is our goal possession stage that enables us to retain our asset-light enterprise mannequin — an essential a part of our shareholder worth proposition.”

The new collection of securitized notes (the “2022 Notes”) embody $900 million Class A-2 Senior Secured Notes (the “Senior Notes”), which include two tranches: the Class A-2-I Senior Secured Notes with an anticipated reimbursement date of 5 years, with a principal quantity of $425 million and a set rate of interest of three.251% every year, payable quarterly; and the Class A-2-II Senior Secured Notes with an anticipated reimbursement date of ten years, with a principal quantity of $475 million and a set rate of interest of 4.008% every year, payable quarterly. The 2022 Notes additionally embody a revolving financing facility that enables for the issuance of as much as $75 million in variable funding notes, which was drawn in full in reference to the closing.

The proceeds from the location of the Senior Notes will probably be used as follows:

  • to repay in full the roughly $556.3 million in combination principal quantity of the Series 2018-1 Class A-2-I Notes (along with any accrued and unpaid curiosity on such Series 2018-1 Class A-2-I Notes),
  • to pay the transaction prices and fund the reserve accounts related to the securitized financing facility, and
  • to fund a portion of the acquisition of Sunshine Fitness in an quantity as much as $325 million.

The Company will focus on the monetary impacts of this transaction throughout its fourth quarter 2021 earnings name on February 24, 2022. This press launch doesn’t represent a suggestion to promote or the solicitation of a suggestion to purchase the 2022 Notes or another safety. The 2022 Notes to be provided haven’t been, and won’t be, registered underneath the Securities Act of 1933 and might not be provided or offered in the United States absent registration or an relevant exemption from the registration necessities of the Securities Act of 1933. 

About Planet Fitness

Founded in 1992 in Dover, NH, Planet Fitness is without doubt one of the largest and fastest-growing franchisors and operators of health facilities in the United States by variety of members and areas. As of December 31, 2021, Planet Fitness had 15.2 million members and a pair of,254 shops in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia. The Company’s mission is to boost folks’s lives by offering a high-quality health expertise in a welcoming, non-intimidating setting, which we name the Judgement Free Zone®. More than 90% of Planet Fitness shops are owned and operated by unbiased enterprise women and men.

Forward-Looking Statements

This press launch incorporates “forward-looking statements” throughout the that means of the federal securities legal guidelines, which contain dangers and uncertainties. Forward-looking statements embody the Company’s statements with respect to the anticipated use of proceeds from the sale of the Class A-2 Notes and to the acquisition of Sunshine Fitness and potential advantages therefrom, in addition to different statements, estimates and projections that don’t relate solely to historic information. Forward-looking statements might be recognized by phrases resembling “imagine,” “anticipate,” “objective,” “plan,” “will,” “prospects,” “future,” “technique” and related references to future intervals, though not all forward-looking statements embody these figuring out phrases. Forward-looking statements should not assurances of future efficiency. Instead, they’re based mostly solely on the Company’s present beliefs, expectations and assumptions concerning its means to efficiently full the refinancing transactions. Because forward-looking statements relate to the long run, they’re topic to inherent uncertainties, dangers and modifications in circumstances which might be tough to foretell and plenty of of that are outdoors of the Company’s management. Actual outcomes and monetary situation might differ materially from these indicated within the forward-looking statements. Important elements that would trigger the Company’s precise outcomes to vary materially embody dangers and uncertainties related to the length and affect of COVID-19, which has resulted and will proceed to lead to retailer closures and a lower within the Company’s web membership base and will give rise to or heighten a number of of the opposite dangers and uncertainties described herein, the Company’s means to consummate the refinancing transactions on phrases acceptable to the Company, on the timeline anticipated or in any respect, capital markets circumstances, the Company’s substantial elevated indebtedness on account of the transactions and its means to incur extra indebtedness or refinance that indebtedness sooner or later, the Company’s future monetary efficiency and the Company’s means to pay principal and curiosity on its indebtedness, competitors within the health trade, the Company’s and franchisees’ means to draw and retain members, the Company’s and franchisees’ means to establish and safe appropriate websites for brand spanking new franchise shops, modifications in client demand, modifications in tools prices, the Company’s means to increase into new markets domestically and internationally, working prices for the Company and franchisees usually, availability and price of capital for franchisees, acquisition exercise, developments and modifications in legal guidelines and laws, the Company’s company construction and tax receivable agreements, failures, interruptions or safety breaches of the Company’s info techniques or know-how, basic financial circumstances and the opposite elements described within the Company’s annual report on Form 10-Okay for the yr ended December 31, 2020, and the Company’s different filings with the Securities and Exchange Commission. In gentle of the numerous dangers and uncertainties inherent in forward-looking statements, buyers mustn’t place undue reliance on forward-looking statements, which replicate the Company’s views solely as of the date of this press launch. Except as required by legislation, neither the Company nor any of its associates or representatives undertake any obligation to offer extra info or to appropriate or replace any info set forth on this launch, whether or not on account of new info, future developments or in any other case. All forward-looking statements attributable to us are expressly certified by these cautionary statements.

SOURCE Planet Fitness, Inc.

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