Life Time, Inc., an indirect subsidiary of Life Time Group Holdings, Inc., has priced its previously announced private Offering of $500 million in aggregate principal amount of 6.000 percent senior secured Notes due 2031. The Offering was upsized from $400 million to $500 million in aggregate principal amount. The Notes will pay interest on a semi-annual basis.
The Offering is expected to close on November 5, 2024, subject to customary closing conditions.
Concurrently with the closing of the Offering, Life Time, Inc. said it intends to amend its existing credit agreement to incur new term loans maturing in 2031 in an aggregate principal amount of $1,000 million and amend certain other provisions of its existing credit agreement.
Borrowings under the New Term Loan Facility will reportedly bear interest at a rate per annum of the Secured Overnight Financing Rate plus an applicable margin of 2.50 percent, subject to a certain ratings-based step-down.
Life Time, Inc. intends to use the net proceeds from the Refinancing and cash from its balance sheet to fund the satisfaction and discharge of the Issuer’s 5.750 percent Senior Secured Notes due 2026 and 8.000 percent Senior Notes due 2026, as well as pay-related fees and expenses. The additional proceeds from the increased aggregate principal amount of the Notes will reportedly be used to repay a corresponding loan amount drawn under the Issuer’s revolving credit facility.
“We are pleased with this Refinancing,” said Erik Weaver, EVP and CFO. “We believe the pricing and terms reflect the strength of our credit profile. With this objective now met, we look forward to taking advantage of the opportunities and growth ahead.”
Image courtesy Life Time Group Holdings, Inc.
