(Bloomberg) – United FP, the largest operator of Planet Fitness gyms, is considering a $750 million debt package to help refinance maturing leveraged loans, according to people familiar with the matter. Discussions are being held with private credit financial institutions.
American Securities Inc.’s fitness franchisees are working with Evercore, which provides new financing to direct lenders and opportunistic funds, said the people, who requested anonymity because the details are private. It is said that they have been in contact regarding this matter. It added that the proposed deal would include term loans in addition to preferred stock.
The cash will help refinance debt, including a $525 million term loan due December 2026 that was originally syndicated in the loan market, according to data compiled by Bloomberg. The money helped American Securities finance its acquisition of United FP, Bloomberg reported at the time.
The company becomes the latest in a series of companies to turn to other lending products in the face of short-term maturities. Other companies, including Carestream Dental, also sought funding from private credit institutions, Bloomberg reported.
The talks are preliminary and details are subject to change, officials said.
Spokespeople for American Securities and Evercore declined to comment. A United PF representative did not respond to a request for comment.
United FP’s credit rating has been under pressure in recent years, with S&P Global Ratings revising the company’s outlook to negative in April 2023. The rating agency argued that the company is illiquid and likely to use a revolver.
Texas-based UFP serves about 1.2 million members in more than 190 clubs, according to its website. The company is the largest operator and developer of Planet Fitness branded gyms.
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