Life Time Announces Commencement of Private Offering of $400 Million of Senior Secured Notes Due 2031
Life Time Group Holdings, Inc. (NYSE: LTH) announced that its subsidiary, Life Time, Inc., has initiated a private offering of $400 million in senior secured notes due 2031. Concurrently, the company plans to amend its existing credit agreement to incur new term loans of $1,000 million. The proceeds from these transactions, along with cash on hand, will be used to satisfy and discharge existing notes due in 2026 and cover related expenses.
The new notes will be guaranteed on a senior secured basis by LTF Intermediate Holdings, Inc. and certain subsidiaries. They will be offered privately to qualified institutional buyers and non-U.S. persons, exempt from SEC registration requirements. Life Time operates over 175 athletic country clubs across the U.S. and Canada, serving members from 90 days to 90+ years old with various health and wellness programs.
Life Time Group Holdings, Inc. (NYSE: LTH) ha annunciato che la sua controllata, Life Time, Inc., ha avviato un offerta privata di 400 milioni di dollari in note senior garantite con scadenza nel 2031. Contestualmente, la società intende modificare il suo accordo di credito esistente per ottenere nuovi prestiti a termine di 1.000 milioni di dollari. I proventi di queste transazioni, insieme alla liquidità disponibile, saranno utilizzati per soddisfare e estinguere note esistenti in scadenza nel 2026 e coprire le spese correlate.
Le nuove note saranno garantite su base senior da LTF Intermediate Holdings, Inc. e alcune controllate. Esse saranno offerte privatamente a investitori istituzionali qualificati e a persone non statunitensi, esenti dai requisiti di registrazione della SEC. Life Time gestisce oltre 175 club sportivi negli Stati Uniti e in Canada, servendo membri da 90 giorni a oltre 90 anni con vari programmi di salute e benessere.
Life Time Group Holdings, Inc. (NYSE: LTH) anunció que su subsidiaria, Life Time, Inc., ha iniciado una oferta privada de 400 millones de dólares en notas senior aseguradas con vencimiento en 2031. Concurrentemente, la empresa planea modificar su acuerdo crediticio existente para incurrir en nuevos préstamos a plazo de 1,000 millones de dólares. Los ingresos de estas transacciones, junto con el efectivo disponible, se utilizarán para satisfacer y liquidar notas existentes con vencimiento en 2026 y cubrir gastos relacionados.
Las nuevas notas estarán garantizadas sobre una base senior por LTF Intermediate Holdings, Inc. y algunas subsidiarias. Se ofrecerán de forma privada a compradores institucionales calificados y personas no estadounidenses, exentas de los requisitos de registro de la SEC. Life Time opera más de 175 clubes atléticos en EE.UU. y Canadá, atendiendo a miembros de 90 días a más de 90 años con varios programas de salud y bienestar.
Life Time Group Holdings, Inc. (NYSE: LTH)는 그 자회사인 Life Time, Inc.가 2031년 만기 4억 달러 규모의 고위험 담보 노트의 사모 공모를 시작했다고 발표했습니다. 동시에 회사는 10억 달러 규모의 신규 장기 대출을 받기 위해 기존 신용 계약을 수정할 계획입니다. 이러한 거래로 인한 수익은 현금과 함께 2026년에 만기가 도래하는 기존 노트를 만족시키고 해제하는 데 사용됩니다.
새로운 노트는 LTF Intermediate Holdings, Inc. 및 특정 자회사가 고위험 담보로 보증합니다. 이들은 등록 요건이 면제된 자격을 갖춘 기관 투자자와 비미국인에게 사적으로 제공됩니다. Life Time은 미국과 캐나다 전역에서 175개 이상의 체육관을 운영하며 90일에서 90세 이상의 다양한 건강 및 웰니스 프로그램을 제공하고 있습니다.
Life Time Group Holdings, Inc. (NYSE: LTH) a annoncé que sa filiale, Life Time, Inc., a lancé une offre privée de 400 millions de dollars en billets sécurisés senior arrivant à échéance en 2031. En parallèle, l'entreprise prévoit de modifier son accord de crédit existant pour contracter de nouveaux prêts à terme d'un montant de 1 000 millions de dollars. Les produits de ces transactions, ainsi que la trésorerie disponible, seront utilisés pour solder et éteindre les billets existants arrivant à échéance en 2026 et couvrir les frais connexes.
Les nouveaux billets seront garantis sur une base senior sécurisée par LTF Intermediate Holdings, Inc. et certaines filiales. Ils seront offerts discrètement à des acheteurs institutionnels qualifiés et à des personnes non américaines, exemptés des exigences d'enregistrement de la SEC. Life Time gère plus de 175 clubs sportifs aux États-Unis et au Canada, servant des membres de 90 jours à plus de 90 ans avec divers programmes de santé et de bien-être.
Life Time Group Holdings, Inc. (NYSE: LTH) hat angekündigt, dass ihre Tochtergesellschaft, Life Time, Inc., ein privates Angebot über 400 Millionen Dollar in senior gesicherten Anleihen mit Fälligkeit 2031 initiiert hat. Gleichzeitig plant das Unternehmen, seine bestehende Kreditvereinbarung zu ändern, um neue Terminkredite in Höhe von 1.000 Millionen Dollar aufzunehmen. Die Erträge aus diesen Transaktionen sowie Bargeldreserven werden verwendet, um bestehende Anleihen mit Fälligkeit 2026 zu tilgen und die damit verbundenen Kosten zu decken.
Die neuen Anleihen werden auf einer senior gesicherten Basis von LTF Intermediate Holdings, Inc. und bestimmten Tochtergesellschaften garantiert. Sie werden privat an qualifizierte institutionelle Käufer und nicht-US-Personen angeboten, die von den Registrierungsanforderungen der SEC befreit sind. Life Time betreibt über 175 Sportclubs in den USA und Kanada und bedient Mitglieder im Alter von 90 Tagen bis über 90 Jahren mit verschiedenen Gesundheits- und Wellnessprogrammen.
- Refinancing of existing debt with new $400 million senior secured notes and $1,000 million new term loans
- Potential improvement in debt structure and terms
- Strong market presence with over 175 athletic country clubs across the U.S. and Canada
- Increase in total debt load with $1.4 billion in new financing
- Potential increase in interest expenses depending on new debt terms
- Continued reliance on debt financing for operations
Insights
Life Time's announcement of a
- Improved interest rates, possibly reducing interest expenses
- Extended debt maturity, enhancing financial flexibility
- Stronger liquidity position, supporting future growth initiatives
However, investors should note that while refinancing can optimize the capital structure, it doesn't necessarily improve the company's overall debt burden. The impact on Life Time's balance sheet and cash flow will depend on the new terms secured. Given the current market cap of
Life Time's refinancing initiative comes at a important time for the fitness industry, which has been evolving post-pandemic. With over 175 athletic country clubs and a growing digital presence, Life Time is positioning itself for potential expansion and modernization. Key points to consider:
- The company's focus on a "healthy way of life" ecosystem aligns with increasing consumer interest in holistic wellness
- The refinancing could provide capital for renovations or new club openings, enhancing competitive positioning
- Life Time's diverse age demographic (90 days to 90+ years) suggests a broad market appeal, which could be leveraged for growth
Investors should monitor how Life Time utilizes this financial flexibility to adapt to changing consumer preferences and potential industry disruptions. The success of this refinancing in supporting Life Time's strategic initiatives could be a key factor in the company's future market performance and valuation.
The Issuer 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
The Notes will be guaranteed on a senior secured basis by LTF Intermediate Holdings, Inc., the direct parent of the Issuer, and each of the Issuer's existing and future wholly owned domestic restricted subsidiaries that guarantees its New Term Loan Facility, subject to certain exceptions. The Notes and the related guarantees thereof will be offered in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to non-
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No assurance can be made that the Offering or the other Refinancing transactions will be consummated on their proposed terms or at all.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 175 athletic country clubs across
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements, including with respect to the proposed Refinancing (including the amounts and consummation thereof). Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management's control. These statements involve risks and uncertainties that may cause Life Time's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, Life Time assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
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SOURCE Life Time Group Holdings, Inc.
FAQ
What is the size of Life Time's (LTH) new debt offering announced on October 21, 2024?
How does Life Time (LTH) plan to use the proceeds from its new debt offering?
Who are the eligible buyers for Life Time's (LTH) new senior secured notes?
How many athletic country clubs does Life Time (LTH) operate as of October 2024?
