PureGym's parent company, Pinnacle Bidco plc, received a credit rating upgrade from Fitch to 'B' from 'B-', with a Stable Outlook, following a refinancing that reshapes its debt structure and supports its expansion plans. The refinancing included securing £805 million on Wednesday through two tranches of senior secured notes: €380 million and £475 million, both due in 2028. This move, one of the largest deals of its kind in the sector's history, allows PureGym to repay existing debt and £200 million of preferred shares, despite an expected temporary rise in leverage to 6.0x by the end of 2026.
The proceeds from the notes, along with an increased senior credit facility of £175.5 million from a syndicate of banks, provide PureGym with nearly £1 billion in investor commitments and £300 million of available liquidity. Although interest payments are projected to increase from £51 million to around £80 million annually due to higher interest rates (10.00% for the Sterling tranche and 8.25% for the Euro tranche), CEO Humphrey Cobbold stated the company has the scale and cash flow to manage this alongside its growth strategy. The rapid, one-day take-up of the offering indicated strong market appetite.
PureGym aims for significant expansion, planning to open approximately 300 new gyms between 2026 and 2029, including 164 sites in the UK and 94 in the U.S. Fitch projects revenue growth of 6% in 2026, accelerating to an average of 10% in subsequent years. The company also intends to expand into Switzerland, the Middle East, and other attractive markets, with management focused on EBITDA growth and cost discipline to maintain liquidity in the competitive fitness sector.
