HAMPTON, N.H., Nov. 12, 2019 /PRNewswire/ -- Planet
Fitness, Inc. (NYSE:PLNT) (together with its subsidiaries, the
"Company") today announced that certain of its subsidiaries intend
to complete a recapitalization transaction, which will include the
issuance of a new series of securitized debt under their existing
securitized financing facility.
- The Company had approximately $1.2
billion of outstanding debt under its existing securitized
financing facility as of September 30,
2019.
- The Company intends to issue $550,000,000 Series 2019-1 Fixed Rate Senior
Secured Notes, Class A-2 (the "Notes").
- The net proceeds of the securitized financing facility are
expected to be used:
-
- to pay the transaction costs and fund the reserve accounts
associated with the securitized financing facility, and
- for working capital purposes and for general corporate
purposes, which may include a return of capital to the Company's
equityholders.
The consummation of the offering is subject to market and other
conditions and is anticipated to close in the fourth quarter of
2019. However, there can be no assurance that the Company will be
able to successfully complete the recapitalization 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 United States by
number of members and locations. As of September 30, 2019, Planet Fitness had more than
14.1 million members and 1,899 stores in 50 states, the
District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama and Mexico. 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 95% 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 can be identified by words such as
"intend," "expect," "anticipate," "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 its ability to successfully complete the
recapitalization transaction. 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 actual results to differ materially include risks and
uncertainties associated with the Company's ability to consummate
the recapitalization 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, the
Company's and franchisees' ability to attract and retain new
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, the Company's 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, 2018 and 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. All forward-looking statements
attributable to us are expressly qualified by these cautionary
statements.
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SOURCE Planet Fitness, Inc.