Planet Fitness, Inc. announced that it has priced $750 million of Series 2025-1 Class A-2 Fixed Rate Senior Secured Notes (the "Class A-2 Notes"), which consist of two tranches: the Class A-2-I Senior Secured Notes with an anticipated repayment term of five years, with an aggregate principal amount of $400 million and a fixed interest rate of 5.274% per annum, payable quarterly, and the Class A-2-II Senior Secured Notes with an anticipated repayment term of seven years, with an aggregate principal amount of $350 million and a fixed interest rate of 5.649% per annum, payable quarterly. The Class A-2 Notes are expected to be issued by Planet Fitness Master Issuer LLC (the "Master Issuer"), a limited-purpose, bankruptcy remote, indirect subsidiary of Planet Fitness, Inc. in a privately placed securitization transaction. In addition to the Class A-2 Notes, the Company expects that it will enter into a $75 million variable funding note facility, in addition to the existing $75 million 2022-1 Variable Funding Senior Secured Notes, Class A-1 (the "Class A-1 Notes").
As of September 30, 2025, there were no borrowings outstanding under the existing variable funding notes facility. The proceeds from the expected sale of the Class A-2 Notes will be used as follows: to repay in full the Series 2022-1 Class A-2-I Notes, which as of September 30, 2025, had a principal balance of approximately $410 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.
