(Bloomberg) -- The largest operator of Planet Fitness gyms, United FP, is in talks with private credit lenders for a $750 million debt package to help refinance a maturing leveraged loan, according to people with knowledge of the matter.
The American Securities-owned fitness franchisee is working with Evercore Inc., which has been reaching out to direct lenders and opportunistic funds about providing fresh financing, said the people who asked not to be identified as the details are private. The proposed deal would include a term loan as well as preferred equity, they added.
The cash will help refinance debt including a $525 million term loan due in December 2026 that was originally syndicated in the loan market, according to data compiled by Bloomberg. The funds helped finance American Securities purchase of United FP, Bloomberg reported at the time.
The firm would be the latest in a string of companies facing near-term maturities to switch to other lending products. Other firms such as Carestream Dental Inc. also went to private credit lenders for funding, Bloomberg reported.
Conversations are preliminary and details may change, the people said.
Spokespeople for American Securities and Evercore declined to comment. A United PF representative did not reply to requests for comment.
United FP’s credit rating has come under pressure over the past few years with S&P Global Ratings revising the company’s outlook to negative in April of 2023. The grader argued the firm had thin liquidity and would likely draw from its revolver.
Texas-headquartered UFP serves around 1.2 million members across more than 190 clubs, according to the website. The firm is the largest operator and developer of gyms under the Planet Fitness brand.
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