#United States #Planet Fitness #Hampton #refinancing #NYSE PLNT

Planet Fitness Completes Major Refinancing Transaction

On December 15, 2025, Planet Fitness, Inc. (NYSE: PLNT) officially announced the successful completion of its refinancing transaction, a strategic step towards bolstering its financial structure and ensuring continued growth. This refinancing entails the issuance of a new series of securitized notes, referred to as the "2025 Notes," amounting to $750 million and structured in two main tranches.

The first tranche, known as the Class A-2-I Senior Secured Notes, includes a principal of $400 million and carries a fixed interest rate of 5.274% per annum, with an anticipated repayment period of five years and quarterly payment schedule. The second tranche, the Class A-2-II Senior Secured Notes, encompasses $350 million with a higher fixed interest rate of 5.649% per annum, due within seven years also on a quarterly basis.

In addition to these notes, the 2025 refinancing features a revolving financing facility that opens the possibility for an additional $75 million through variable funding notes. Importantly, as of the closing date, none of these Variable Funding Notes have been utilized, indicating that Planet Fitness retains significant financial flexibility.

Purpose of the Proceeds

The proceeds generated from the placement of the 2025 Notes are earmarked for specific uses aimed at enhancing the operational capabilities of Planet Fitness:
1. Repayment of Previous Notes: A large portion of the funds will be allocated to fully repay the Series 2022-1 Class A-2-I Notes that amounted to approximately $410 million as of September 30, 2025. This will eliminate previous liabilities and strengthen the company's balance sheet.
2. Transaction Costs: Funds will be utilized to cover the costs associated with the entire refinancing transaction and to bolster reserve accounts tied to the securitized financing facility.
3. Corporate Development: Moreover, these proceeds will support various general corporate purposes, such as facilitating share repurchases, an initiative that emphasizes the company’s confidence in its growth outlook.

Overview of Planet Fitness

Founded in 1992, Planet Fitness has emerged as a leading franchise and operator of fitness centers globally, boasting around 20.7 million members across 2,795 clubs in the United States, Canada, Mexico, and beyond. The company's core mission focuses on enhancing lives through the provision of high-quality fitness experiences in a welcoming environment branded as the "Judgement Free Zone."

With over 90% of its locations owned by independent franchisees, the collaborative business model has allowed Planet Fitness to thrive, offering affordable memberships and fostering inclusive fitness culture.

Forward-Looking Statements and Market Outlook

The refinancing also represents a strategic maneuver amid the dynamic landscape of the fitness industry, where adapting to changes and maintaining competitive positions is critical. The company made clear that this announcement includes forward-looking statements that involve risks and uncertainties, and actual results could diverge from expectations. Factors influencing future performance may include market conditions, membership retention rates, competition, and broader economic influences.

As Planet Fitness navigates its financial strategies and aims for continued expansion, adherence to sound fiscal practices, such as this refinancing, positions the company well for future challenges. The commitment to reducing debt while capitalizing on growth opportunities is a testament to its proactive management approach.

In summary, Planet Fitness’s completion of a $750 million refinancing transaction marks a significant milestone in its financial journey. As it steps into the future, the company remains poised to extend its reach and maintain its core values of inclusivity, affordability, and quality in the fitness arena.