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PRODUCT NEWS
PureGym £805m refinancing ‘one of the largest deals of its kind in the sector’s history’
28 Sep 2023 . BY Liz Terry
Cobbold: / PureGym
PureGym’s holding company, Pinnacle Bidco, has completed the £805m refinancing which was announced on Tuesday this week, with the rapid, one-day take-up of the offering indicating a strong appetite for the deal.

Thanking his team for ‘restoring business performance’ and ‘navigating the myriad challenges the company has faced since the start of the pandemic’, CEO, Humphrey Cobbold, said the scale of the deal is historic: “We’re delighted to have priced this refinancing, one of the largest of its kind in the sector’s history,” he commented. “We view this as a huge vote of confidence in PureGym, our recent trading, management team and strategy.

“This refinancing gives Pure Gym a distinct competitive advantage compared to more ‘resource-constrained’ competitors,” he continued. “There’s considerable demand for our affordable, flexible fitness proposition and we have a plan to take it to millions more people across our markets.

“This includes ongoing significant expansion in the UK, Switzerland and the Middle East with our own and franchise footprint and continued exploration of other attractive markets.”

The offering was for two tranches of senior secured notes – €380 million and £475 million – with both due in 2028. No opportunity was offered in the US.

The proceeds, together with cash on the company’s balance sheet, will be used to redeem existing loan notes – including the payment of accrued interest – as well as paying redemption premiums for existing Euro notes.

Pinnacle Bidco has also agreed an increased senior credit facility of £175.5 million (previously £145 million) from a syndicate of banks including Barclays, RBC, Deutsche Bank, ING and JP Morgan, taking the company’s investor commitments to almost £1 billion.

“I want to acknowledge and thank those longstanding investors who have once again chosen to support us and to welcome the new investors who have joined us at this time,” said Cobbold. “Our £300 million of available liquidity is further underpinned by the five-year extension of debt maturities. This gives us a stable financial platform to confidently progress our investment-focused strategy of opening new gyms and ensuring we maintain the quality of our existing facilities.”

Interest rates have been agreed at 10.00 per cent range for the Sterling tranche and 8.25 per cent for the Euros – substantially more than the interest being paid on the expiring loan notes – (£) 6.375 per cent and (€) 5.50 per cent.

PureGym’s interest payments will go from £51 million a year to around £80 million due to these increases, with Cobbold saying: “While the refinancing will mean a higher interest cost, reflecting the prevailing interest rate environment, we have the scale and cashflow to manage this alongside our expansion and investment plans.

“As we turn the page and begin a new chapter for the Group, in many ways this is the most exciting yet. We’ve been on a journey from start-up to being a market leader in the UK and then onto international expansion in Europe and more recently further afield.

“We now have the certainty and resources to action our clear plans to extend leadership in our existing markets and continue expansion elsewhere,” he said.

Cobbold said he sees PureGym as a global player, saying: “We’re clear that ‘scale players’ will lead this market in the years to come and are pleased to be one of a handful of international operators responsible for driving activity levels across the world.

“The management team and I are energised by the opportunities we see ahead and resolutely focussed on delivery of our strategy,” he concluded.


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Jobs    News   Products   Magazine
PRODUCT NEWS
PureGym £805m refinancing ‘one of the largest deals of its kind in the sector’s history’
28 Sep 2023 . BY Liz Terry
Cobbold: / PureGym
PureGym’s holding company, Pinnacle Bidco, has completed the £805m refinancing which was announced on Tuesday this week, with the rapid, one-day take-up of the offering indicating a strong appetite for the deal.

Thanking his team for ‘restoring business performance’ and ‘navigating the myriad challenges the company has faced since the start of the pandemic’, CEO, Humphrey Cobbold, said the scale of the deal is historic: “We’re delighted to have priced this refinancing, one of the largest of its kind in the sector’s history,” he commented. “We view this as a huge vote of confidence in PureGym, our recent trading, management team and strategy.

“This refinancing gives Pure Gym a distinct competitive advantage compared to more ‘resource-constrained’ competitors,” he continued. “There’s considerable demand for our affordable, flexible fitness proposition and we have a plan to take it to millions more people across our markets.

“This includes ongoing significant expansion in the UK, Switzerland and the Middle East with our own and franchise footprint and continued exploration of other attractive markets.”

The offering was for two tranches of senior secured notes – €380 million and £475 million – with both due in 2028. No opportunity was offered in the US.

The proceeds, together with cash on the company’s balance sheet, will be used to redeem existing loan notes – including the payment of accrued interest – as well as paying redemption premiums for existing Euro notes.

Pinnacle Bidco has also agreed an increased senior credit facility of £175.5 million (previously £145 million) from a syndicate of banks including Barclays, RBC, Deutsche Bank, ING and JP Morgan, taking the company’s investor commitments to almost £1 billion.

“I want to acknowledge and thank those longstanding investors who have once again chosen to support us and to welcome the new investors who have joined us at this time,” said Cobbold. “Our £300 million of available liquidity is further underpinned by the five-year extension of debt maturities. This gives us a stable financial platform to confidently progress our investment-focused strategy of opening new gyms and ensuring we maintain the quality of our existing facilities.”

Interest rates have been agreed at 10.00 per cent range for the Sterling tranche and 8.25 per cent for the Euros – substantially more than the interest being paid on the expiring loan notes – (£) 6.375 per cent and (€) 5.50 per cent.

PureGym’s interest payments will go from £51 million a year to around £80 million due to these increases, with Cobbold saying: “While the refinancing will mean a higher interest cost, reflecting the prevailing interest rate environment, we have the scale and cashflow to manage this alongside our expansion and investment plans.

“As we turn the page and begin a new chapter for the Group, in many ways this is the most exciting yet. We’ve been on a journey from start-up to being a market leader in the UK and then onto international expansion in Europe and more recently further afield.

“We now have the certainty and resources to action our clear plans to extend leadership in our existing markets and continue expansion elsewhere,” he said.

Cobbold said he sees PureGym as a global player, saying: “We’re clear that ‘scale players’ will lead this market in the years to come and are pleased to be one of a handful of international operators responsible for driving activity levels across the world.

“The management team and I are energised by the opportunities we see ahead and resolutely focussed on delivery of our strategy,” he concluded.


PRODUCT NEWS
Team GB chooses Absolute Performance for Olympic gym contract for third time
Cardiff-based gym design and installation company, Absolute Performance, has been awarded the contract to design, supply and install three gyms for Team GB for the 2024 games in Paris.
Balanced Body partners with Third Space on its new group reformer pilates offering
As Third Space unveiled its latest club in Wimbledon at the end of 2023 as part of its growth development into suburban, residential locations, it also revealed a new state of the art Reformer Pilates studio at the new site in response to members seeking a low-impact, full- body workout for all abilities.
Skillcourt UK launches at The Kia Oval, London
Skillcourt UK is thrilled to announce the official launch of its innovative platform at The Kia Oval in London.
VibeShift technology delivers enhancing vibration to indoor cycling
Power Plate’s new VibeShift technology is now available on the Power Plate Rev bike.
Resolute Multi-Stations offer a configurable design
In response to the growth in strength training, Precor has launched its Resolute Multi- Stations.
Nada Rx flooring reduces stress on joints
Ecore has launched Nada Rx, an ECOsurfaces PVC-free flooring line.
Boxblitx gamifies boxing
Boxblitx, an interactive boxing fitness machine, has been designed to transform gym routines by gamifiying boxing.
Emperor Ice Baths makes global debut
Tapping into the growing interest in cold water immersion, Emperor Ice Baths has created what founder Daniel Watson calls "the most bespoke [portable] ice bath on the market".
Hyperice and Escape Fitness partner to redefine recovery
Fitness and recovery brands Hyperice and Escape Fitness have teamed up to create dedicated recovery stations for spas, gyms and high-performance sport-specific training facilities.
Pulse has added a Curved Slat Treadmill to its offering
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Perfect Gym Solutions S.A.

Perfect Gym is a global software provider specialising in fitness and recreation facility management [more...]
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Javits Convention Center, New York, United States
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