Planet Fitness's stock gets a lift after $300 million ASR agreement

Shares of Planet Fitness Inc. PLNT, +2.32% rose 1.1% in premarket trade Wednesday, after the fitness centers operator said it entered into a $300 million accelerated share repurchase agreement. The ASR agreement with Citibank N.A. is part of the $500 million buyback program announced in August, of which $458 million remained as of Nov. 12. As part of the agreement, Planet Fitness will pay Citibank $300 million and will initially receive 4.6 million shares of its common stock, or about 80% of the shares it expects to buy back as part of the ASR. The total number of shares repurchased will be based on the average daily volume-weighted average prices during the term of the agreement, less an agreed discount. Planet Fitness's stock has run up 50.4% year to date through Tuesday, while the S&P 500 SPX, +0.61% has gained 1.8%.

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