Xponential Fitness, a leading global franchisor of health and wellness brands, announced a new credit agreement to refinance existing debt.
The company secured a $525 million term loan facility and a $25 million revolving credit facility.
The refinancing eliminates convertible preferred stock, enhancing long-term value for shareholders.
Debt Refinancing
Secured new credit facilities totaling $550 million to refinance existing debt and repurchase convertible preferred stock.
Interest Savings
Expected decrease in interest payments by up to 1% upon achieving financial milestones.
Enhanced Position
Eliminated convertible preferred stock convertible into approximately 8.2 million shares of common stock.
- The refinancing will reduce interest payments and enhance financial flexibility for Xponential Fitness.
- Eliminating convertible preferred stock eliminates potential dilution of common stock and strengthens the company's financial structure.
Xponential Fitness's debt refinancing and the elimination of convertible preferred stock signal a strategic move to bolster long-term shareholder value and financial stability.