Life Time, Inc., a wholly-owned subsidiary of Life Time Group Holdings, Inc., has completed the refinancing of its revolving credit facility.
Under the terms of the amended facility, the company:
- Increased the commitments under the revolving credit facility from $475 million to $650 million;
- Reduced the floating interest rate per annum by 100 basis points to Term Secured Overnight Financing Rate (SOFR) plus an applicable margin of 2.50 percent;
- Reduced the undrawn commitment fee rate to 25 basis points; and,
- Extended the maturity of the revolving credit facility to September 2029, subject to the same springing maturity based on the company’s secured and unsecured notes.
- Additionally, the applicable margin of 2.50 percent will decrease up to 50 basis points upon the company achieving certain first lien net leverage ratio and credit rating targets.
In connection with the refinancing, the company said it borrowed under the revolving credit facility and paid the remaining aggregate principal amount of approximately $200 million outstanding under its term loan facility that had an interest rate of SOFR plus 4.00 percent. Life Time said no borrowings under the term loan facility remain outstanding.
“We’re pleased to complete this first step in refinancing our long-term debt. We believe the strength of our business and the progress we’ve made toward achieving our financial objectives put us in a great position not only to execute this successful refinancing, but also to address our outstanding secured and unsecured notes in the coming months,” commented Erik Weaver, EVP and CFO, Life Time Group Holdings, Inc. “We remain excited about the opportunities in front of us.”
