Pure Gym is seeking to raise £1.4 billion ($1.9 billion) from the high-yield bond market to refinance outstanding debt. The British budget gym chain is marketing six-year senior secured notes in euros at a yield of about 6.5% and a sterling tranche at around 8%. This compares favorably to yields above 8% when existing bonds were sold in 2023.

The tighter pricing reflects a broader rally in European high-yield debt and improved operating performance. Fitch Ratings upgraded Pure Gym to B from B-, citing stronger business performance and expected earnings growth. Still, an ambitious expansion program is expected to keep free cash flow negative as the company opens almost 300 gyms through 2029.

Proceeds will refinance existing notes, partially repay preferred financing, and support general corporate purposes. Pure Gym declined to comment, and Barclays Plc, leading the offering, did not immediately respond.