Life Time Group Holdings, Inc. has closed on its sale-leaseback transaction of three properties for approximately $150 million in gross proceeds. Terms were reportedly similar to previous transactions. Additional details were not disclosed at the time of publication.
Additionally, on June 18, 2025, before the completion of the sale-leaseback transaction, S&P Global Ratings (S&P) upgraded the company’s issuer credit rating to ‘BB-‘ from ‘B+‘. LTH pointed out that, as reasons for the upgrade, S&P cited the company’s strong operating performance, resulting from growth in memberships, dues, member engagement, and demand for in-center offerings, as well as reduced leverage and financial sponsor ownership.
Due to this ratings upgrade and the existing ‘BB-‘ issuer rating from Fitch Ratings, Life Time reported its credit facility margin improved by 25 basis points, effective June 19, 2025. In combination with the interest rate swap agreement executed on April 8, 2025, the effective interest rate of the company’s term loan facility is now 5.659 percent.
“We’re pleased to have completed this sale-leaseback transaction and expect to execute a minimum of $100 million in additional sale-leasebacks over the remainder of 2025,” said Erik Weaver, EVP and CFO, Life Time Group Holdings, Inc. “Combined with our reduced cost of debt, this transaction further enhances our ability to advance a robust club pipeline while maintaining our focus on capital efficiency and financial health.”
Image courtesy Life Time Group Holdings, Inc.
