NEW YORK--(BUSINESS WIRE)--Jul 9, 2018--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

* 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 .

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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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180709005849/en/

CONTACT: 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

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 07/09/2018 04:30 PM/DISC: 07/09/2018 04:31 PM

http://www.businesswire.com/news/home/20180709005849/en