NEWINGTON, NH -- Planet Fitness has received new financing from GE Capital, Corporate Finance to the tune of a $40 million revolving credit facility.
GE Capital, Norwalk, CT, a division of General Electric, also announced today that the financing will be used for working and growth capital, and the facility may be increased to $50 million under certain conditions.
“Because of GE Capital’s deep domain expertise, they’re smart about loan underwriting and willing to make significant financial commitments to growth businesses,” Planet Fitness CFO Jayne Conway said in a statement. “This provides us with the liquidity and flexibility we need both for our day-to-day operations and to foster our growth plans.”
Planet Fitness, which had a proposed minority sale with a private equity firm fall through this past summer, has more than 350 locations in 38 states with more than 2 million members.
“Providing capital to rapidly growing companies is one of our specialties,” Tom Quindlen, president and CEO of GE Capital, Corporate Finance, said in a statement. “This means working closely with clients to fully understand their needs, and then finding and delivering the right solution.”
The Newington, NH-based company was eighth on Club Industry’s Top 100 Clubs list this year after generating $129.5 million in revenue in 2009. It was the second consecutive year that Planet Fitness cracked the list’s top 10. The company expects it will open at least 90 new clubs this year.
“Shut the TV off. Don’t listen to fear mongers,” Planet Fitness CEO Mike Grondahl said in a statement. “With great companies like GE and Planet Fitness, America will be just fine.”
Planet Fitness also launched a new national ad campaign today that will be airing in 35 markets.