NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to one note class of Planet Fitness Master Issuer LLC, a whole business securitization.
This transaction represents the Company’s second securitization within the trust. This transaction is structured as a “whole business securitization” in which Planet Fitness Holdings, LLC (“Planet Fitness” or the “Company”) will contribute substantially all of its revenue-generating assets to Planet Fitness Master Issuer LLC (the “Issuer”). The collateral includes existing and future domestic franchise and development agreements and vendor contracts, profits from domestic corporate-owned stores, profits from equipment sales, certain other commission and franchise payments, and domestic and Canadian intellectual property. The Company will not be contributing new collateral in connection with this transaction. The proceeds from the offered notes will be used to pay certain transaction expenses and for general corporate purposes, including a potential return of capital to shareholders.
The Company is best known for providing a fitness experience in a non-intimidating environment where members of all fitness levels can exercise. The brand is also known for providing value to its customers with a standard membership of $10 per month, with a black card option of $22.99 a month. This value proposition is designed to target a broad population, including occasional gym users and the large portion of the population over age 14 who are not gym members.
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.