Crunch Fitness Seeks $800 Million Through Bond Sale

Crunch Fitness is seeking to raise approximately $800 million through an asset-backed securities bond sale. The financing is backed by the company's franchise revenue and follows a broader trend of companies using whole-business securitization to secure capital.

The proposed structure includes $650 million in bonds with an average five-year life targeted at institutional investors. Additionally, the company plans a $100 million privately placed note for future use and a $50 million variable funding facility.

Preliminary discussions with investors have already occurred, and the offering may begin as early as next week.