Life Time Announces Pricing of Public Offering of 12,000,000 Shares of Common Stock
Rhea-AI Summary
Life Time Group Holdings (NYSE: LTH) has priced its public offering of 12,000,000 shares of common stock at $21.75 per share. The offering includes shares from both the company and existing stockholders. Underwriters have a 30-day option to purchase an additional 1,800,000 shares from selling stockholders. The offering is expected to close on August 14, 2024.
Life Time plans to use the net proceeds for general corporate purposes, including potential debt repayment. Morgan Stanley and BofA Securities are lead book-running managers, with several other firms involved in various capacities. The offering is made pursuant to a shelf registration statement filed with the SEC.
Positive
- Potential to raise significant capital through the public offering
- Opportunity to repay debt and improve financial position
- Strong underwriting support from major financial institutions
Negative
- Potential dilution of existing shareholders' ownership
- Selling stockholders reducing their stake in the company
News Market Reaction – LTH
On the day this news was published, LTH declined 1.11%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The underwriters in the offering will have a 30-day option to purchase up to an additional 1,800,000 shares of common stock from the Selling Stockholders. The offering is expected to close on August 14, 2024, subject to customary closing conditions. Life Time intends to use the net proceeds from the offering for general corporate purposes, which may include repayment of indebtedness. The Company will not receive any of the proceeds from the sale of shares of the Company's common stock by the Selling Stockholders.
Morgan Stanley and BofA Securities are acting as lead active book-running managers and Deutsche Bank Securities and Wells Fargo Securities are acting as active book-running managers for the proposed offering. Evercore ISI, Guggenheim Securities, BMO Capital Markets, Mizuho and RBC Capital Markets are also acting as book-running managers for the proposed offering. Oppenheimer & Co., Craig-Hallum and Northland Capital Markets are acting as co-managers for the proposed offering.
Important Information
The securities described above are being offered pursuant to a shelf registration statement on Form S-3 (No. 333-281465), including a base prospectus, which was filed with the SEC on August 12, 2024 and became effective upon filing. The offering will be made only by means of a written prospectus supplement and the accompanying prospectus that form part of the registration statement. A preliminary prospectus supplement related to the offering and accompanying prospectus was filed with the SEC and is available on the SEC's website located at http://www.sec.gov.
When available, copies of the final prospectus supplement and the accompanying prospectus relating to these securities may be obtained from either Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 170 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 public offering. 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
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