Xponential Fitness, Inc. Announces Debt Refinancing, New Credit Facilities
Summary
The new credit agreement also provides for a revolving credit facility with borrowing capacity of $25 million.This refinancing not only allows the Company to decrease interest payments by up to one percent if it achieves certain financial milestones, but it also eliminates the Companys preferred stock which were convertible into approximately 8.2 million shares of common stock, said John Meloun, Chief Financial Officer of Xponential Fitness. We are now even better positioned to support our strategic priorities and create long-term value for our shareholders moving forward.Proceeds from the term loan will be used to refinance, in full, Xponentials existing credit facility, to fund the repurchase of the Companys outstanding convertible preferred stock, and to pay fees and expenses in connection with the foregoing. Borrowings under the revolving credit facility will be used for working capital and general corporate purposes.Xponential Fitness, Inc. (NYSE: XPOF) is one of the leading global franchisors of boutique health and wellness brands. Through its mission to deliver the talents, assets, and capabilities necessary for successful franchise growth, the Company operates a diversified platform of five brands spanning modalities including Pilates, barre, stretching, strength training and yoga. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements.