Xponential Fitness, Inc. (NYSE: XPOF) completed a $525 million five‑year term loan and a $25 million revolving credit facility on December 8, 2025. The proceeds were used to fully refinance the company’s existing credit facility, repurchase all outstanding convertible preferred stock at a cost of approximately $127 million, and cover related transaction fees.
The refinancing is expected to lower Xponential’s interest expense by up to one percentage point if the company meets specified financial milestones. By eliminating the convertible preferred shares—equivalent to about 8.2 million common shares—the company removes a potential dilution overhang, improves its debt‑to‑equity ratio, and strengthens its balance sheet, giving it greater flexibility to fund growth initiatives.
After the announcement, Xponential’s stock advanced 2.4 percent in after‑hours trading on December 8, a move driven by investors’ recognition that the deal simplifies the capital structure and reduces future dilution risk. The market reaction underscored the perceived value of the improved financial footing.
Chief Financial Officer John Meloun said the transaction “positions the company to support its strategic priorities and create long‑term value for shareholders.” He added that the refinancing “not only reduces interest payments by up to one percent if certain milestones are met, but also eliminates the convertible preferred stock that could dilute common equity.”
The deal follows a series of refinancing efforts, including an August 2024 plan to refinance $330 million of debt and a September 2024 amendment adding $25 million in term loans. Xponential has also been divesting non‑core brands and focusing on high‑growth core brands such as Club Pilates and Pure Barre, while reporting margin expansion in recent quarters. The new capital structure positions the company to accelerate these initiatives without the constraints of legacy debt and preferred equity.
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