PureGym has announced that its parent company, Pinnacle Bidco, has successfully priced £804m of senior secured notes.

The gym group has described the refinancing as “one of the largest of its kind in the sector’s history”.

Pinnacle Bidco has finalised terms for the offering of €380m (£329m) in aggregate principal amount of the issuer’s senior secured notes, and another £475m in aggregate principal amount of the issuer’s senior secured notes, both due 2028, as part of the refinancing of the group’s existing euro-denominated senior secured notes due 2025, and sterling-denominated senior secured notes due 2025.

The proceeds from the offering of the notes, together with cash on balance sheet, will be used to redeem the existing notes in full – including paying the accrued interest – and to pay the applicable redemption premium for the existing euro notes. They will also be used to pay any related fees and expenses.

PureGym has also agreed an increased senior credit facility of £175.5m, previously £145m, from a syndicate of banks including Barclays, RBC, Deutsche Bank, ING and JP Morgan, taking its investor commitments to almost £1bn.

“We are delighted to have priced this refinancing, one of the largest of its kind in the sector’s history,” said PureGym Group CEO, Humphrey Cobbold.

“We view this as a huge vote of confidence in PureGym, our recent trading, management team and strategy, and I want to thank my colleagues for all the work they have done to restore business performance and in navigating the myriad challenges we have faced since the pandemic. I also want to acknowledge and thank those longstanding investors who have once again chosen to support the group and I want to welcome the new investors who have joined us at this time.

“Our £300m of available liquidity is further underpinned by the five-year extension of debt maturities. This gives us a stabilised financial platform to confidently progress our investment focused strategy of opening new gyms and ensuring we maintain the quality of our existing facilities. We believe this refinancing gives us a distinct competitive advantage compared to more resource constrained competitors.”

PureGym, which launched in 2009, has approximately 1.9 million members across over 550 sites in the UK and Europe.

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