Planet Fitness, a franchisor and operator of fitness centers, has declared a special cash dividend to holders of Class A common stock and equivalent payments to unit holders of Pla-Fit Holdings, funded in part by an amendment to its senior secured credit facility increasing the aggregate principal amount of the term loan by $230 million.

The company will fund the $275 million special dividend through available cash balances and incremental term loan borrowings of $230 million available through the amendment of the company’s senior credit facilities. Following the amendment, the company’s senior credit facilities consist of $718.45 million in senior secured term loan borrowings and a $75 million senior secured revolving credit facility.

According to a related 8-K filing, JPMorgan Chase served as administrative agent for the lender group. JPMorgan, Guggenheim Securities, Barclays Bank, BMO Capital Markets and U.S. Bank served as joint bookrunners and joint lead arrangers.

Christopher Rondeau, chief executive officer said, “We are pleased to be able to reward our shareholders with this special cash dividend. Today’s announcement highlights the board’s confidence in the strength of our asset-light business model, the unique positioning of Planet Fitness’ affordable, non-intimidating fitness offering and the company’s long runway for future growth. We will continue to evaluate how to best utilize our strong balance sheet and free cash flow generation in order to maximize shareholder value.”

The senior secured term loans bear an initial interest rate of LIBOR + 350 bps following the amendment, while borrowings under the senior secured revolving facility will bear an initial interest rate of LIBOR + 325 bps, with additional step ups in applicable margin to be applied based on increases in the company’s total net leverage to EBITDA ratio during the life of the revolving facility.