Planet Fitness, Inc. announced a refinancing that will raise $750 million to $850 million in Series 2025‑1 Fixed‑Rate Senior Secured Notes and establish a new $75 million variable‑funding note facility. The transaction will also repay the company’s outstanding Series 2022‑1 Class A‑2‑I Notes, which had a principal balance of roughly $410 million as of September 30 2025.
The refinancing replaces the existing securitized debt structure with a more flexible capital arrangement. By issuing the larger Series 2025‑1 notes, Planet Fitness will extend the maturity profile of its debt, reduce overall borrowing costs, and free up capital that can be deployed toward new club openings and equipment upgrades. The $75 million variable‑funding facility provides short‑term liquidity for working‑capital needs and potential share‑repurchase programs.
Strategically, the deal aligns with the company’s aggressive expansion plan through fiscal 2028. The new debt structure supports the franchised model, which accounts for over 90 % of the club network, by ensuring that corporate‑owned locations have access to capital while maintaining a strong balance sheet. Management highlighted that the refinancing will also improve covenant flexibility, allowing the company to navigate market volatility without compromising growth initiatives.
Investors reacted positively to the announcement, reflecting confidence that the debt optimization will enhance financial flexibility and support the company’s long‑term growth strategy. The market’s response underscores the importance of maintaining a robust capital structure in a highly leveraged business model.
The refinancing is expected to close in December 2025. Upon completion, Planet Fitness will have a more favorable debt mix, lower interest expense, and increased capacity to fund franchise development and capital expenditures, positioning the company for continued expansion and shareholder value creation.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.