World Leisure Jobs - PureGym £805m refinancing ‘one of the largest deals of its kind in the sector’s history’...
16 Jun 2024 World leisure: news, training & property
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

28 Sep 2023

PureGym £805m refinancing ‘one of the largest deals of its kind in the sector’s history’
BY Liz Terry

Cobbold:

Cobbold:
photo: 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.





Connect with
World Leisure
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
Report identifies diversity, equity and inclusion challenges in health club sector
Report identifies diversity, equity and inclusion challenges in health club sector   14 Jun 2024

Diversity, equity and inclusion in the European fitness industry is examined in a new report which provides eye-opening findings and a starting point .... more>>
RLA Global: Wellness hotels experience positive growth trend globally in 2023
RLA Global: Wellness hotels experience positive growth trend globally in 2023   14 Jun 2024

Hotels incorporating wellness amenities experienced a significant boost in Total Revenue per Available Room (TRevPAR) in 2023, according to the latest .... more>>
The Park Playground opens first immersive VR franchise in Porto
The Park Playground opens first immersive VR franchise in Porto   14 Jun 2024

The Park Playground, has opened its first Immersive VR franchise in Porto, Portugal. The Porto venue is the company’s fifth European location and .... more>>
Bridgerton Season three – most Instagrammed locations
Bridgerton Season three – most Instagrammed locations   13 Jun 2024

Following the release of season three Of Bridgerton, a study reveals its ten most Instagrammable filming locations. The study, conducted by QR .... more>>
Company profile


IndigoFitness

We Create Training Spaces! We've been designing and delivering high quality training spaces for almost 30 years, offering expert advice on everything from flooring types, to equipment mix, to the best utilisation of space.

View full profile>>

Catalogue gallery


Featured Supplier

Metawell: unlocking the possibilities in a new era of wellness

Metawell: unlocking the possibilities in a new era of wellness

A decade ago, the Gharieni Group began pioneering the integration of advanced wellness technologies into its spa and treatment beds. This innovative approach has since become one of the industry's most significant disruptions and groundbreaking trends. More>>




in this issue

• Virgin gets right to wipe out rent arrears
• Fitness industry mourns passing of Jan Spaticchia
• STA offers mindfulness resources



World Leisure jobs




Exercise Referral Instructor
Salary: Competitive
Location: Saltburn-by-the-Sea
Company: Everyone Active
Epping Forest Keeper (countryside Ranger)
Salary: £35,663 - £39,805pa + Local Govt Pension + benefits
Location: Loughton, UK
Company: City of London Corporation
Aquatics Officer - dual site
Salary: from £29,269pa
Location: Northwich, UK
Company: Brio Leisure
Fitness Manager
Location: Bristol
Company: Everyone Active
Diary dates
Powered by leisurediary.com

22-22 Jun 2024

World Bathing Day

Worldwide,


22-24 Jun 2024

IECSC Las Vegas

Las Vegas Convention Center, Las Vegas, United States







Published by Leisure Media Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd