In May 2018, Bengur Bryan completed the arrangement of $150 million in new senior debt facilities for PF Growth Partners, LLC (“PFGP”) from a syndicate of lenders. The recapitalization provided for a new growth capital facility to support the Company’s new club growth across its various development areas, the buyout of certain minority equity holders, as well as a partial repurchase of $25 million of preferred equity from its partner Alaris Royalty Corp. (“Alaris”).
PFGP, founded in 2007, is one of the leading franchisees of Planet Fitness (“PF”) low-cost fitness clubs. Since opening its first club in 2008 in Maryland, PFGP has grown rapidly to 57 locations operated today across five states including Maryland, Tennessee, Florida, Washington D.C. and Washington state. Victor and Lynne Brick, co-founders and CEO + President of PFGP, each have over 35 years of experience in the health club industry, having opened their first full-service club in 1985. Since becoming a PF franchisee in 2007, Victor and Lynne have expanded the team and its capabilities to include Glenn Norris, CFO, with the Company since 2007, and Chris Cavolo, COO, who joined PFGP in 2012. In addition, the management team is further supported by a group of experienced, professional owners of the business. Over the years, PFGP has received multiple accolades from Planet Fitness corporate, including Franchisee of the Year in 2013, Developer of the Year in 2014 and 2015, Highest Brand Excellence Review in 2014 and the “Judgement Free” Generation Award in 2016.
Bengur Bryan and its affiliates have had a relationship with Victor and Lynne Brick for over 15 years. In November 2014, Bengur Bryan completed a $93.75 million private placement of senior debt and preferred equity to refinance the Company’s existing debt and allow for new club growth in its development areas. Since 2014, Bengur Bryan and its affiliates have provided ongoing financial advisory services to the Company including a $5 million add-on preferred equity investment from its preferred equity partner, Alaris, in July 2015, a $20 million expansion of the Company’s existing capital expenditure loan from a syndicate led by Fifth Third Bank in November 2016 and the acquisition and conversion of 6 non-Planet Fitness clubs, under multiple brands, in early 2017.