KBRA Assigns Preliminary Ratings to Planet Fitness Master Issuer LLC, Series 2018-1

NEW YORK--()--Kroll Bond Rating Agency (KBRA) announces the preliminary ratings to three note classes of Planet Fitness Master Issuer LLC, a whole business securitization.

This transaction represents the Company’s first securitization. This transaction is structured as a “whole business securitization” in which Planet Fitness Holdings, LLC (“Planet Fitness” or the “Company”) will contribute most 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 proceeds from the offered notes will be used to refinance its existing credit facilities, pay certain transaction expenses and for general corporate purposes, including a return of capital to shareholders.

KBRA analyzed the transaction using the Global General Rating Methodology for Asset-Backed Securities published on November 28, 2017. KBRA also conducted an on-site operational review of the Company at their Hampton, NH office in June 2018. KBRA will review the final operative agreements and legal opinions for the transaction prior to closing.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, “Planet Fitness Master Issuer LLC, Series 2018-1”, which was published at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: Planet Fitness Master Issuer LLC, Series 2018-1

       
Series 2018-1     Preliminary Rating     Initial Principal Balance
Class A-1     BBB (sf)     $75,000,000
Class A-2-I     BBB (sf)     $575,000,000*
Class A-2-II     BBB (sf)     $575,000,000*

* The aggregate initial principal amount of the Series 2018-1 Class A-2 Notes may be increased to up to $1.25 billion.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.

Related Publications: (available at www.kbra.com)

CONNECT WITH KBRA

Twitter

LinkedIn

Download the iOS App

YouTube

About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.

Contacts

Kroll Bond Rating Agency
Analytical:
Xilun Chen, Senior Director
646-731-2431
xchen@kbra.com
or
Chris Baffa, Associate Director
646-731-3312
cbaffa@kbra.com
or
Abby Barkwell, Associate Director
646-731-3304
abarkwell@kbra.com
or
Shane Olaleye, Associate Director
646-731-2432
solaleye@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical:
Xilun Chen, Senior Director
646-731-2431
xchen@kbra.com
or
Chris Baffa, Associate Director
646-731-3312
cbaffa@kbra.com
or
Abby Barkwell, Associate Director
646-731-3304
abarkwell@kbra.com
or
Shane Olaleye, Associate Director
646-731-2432
solaleye@kbra.com