Life Time Completes Revolver Upsize and Extension
Life Time Group Holdings, Inc. (NYSE: LTH) has announced the successful refinancing of its revolving credit facility through its wholly-owned subsidiary, Life Time, Inc. The amended facility includes several key improvements:
- Increased commitments from $475 million to $650 million
- Reduced floating interest rate by 100 basis points to Term SOFR plus 2.50% margin
- Lowered undrawn commitment fee rate to 25 basis points
- Extended maturity to September 2029
The company also paid off the remaining $200 million of its term loan facility. CFO Erik Weaver expressed satisfaction with this first step in refinancing long-term debt and anticipates addressing outstanding secured and unsecured notes in the coming months.
Life Time Group Holdings, Inc. (NYSE: LTH) ha annunciato il successo del rifinanziamento della sua linea di credito revolving tramite la sua controllata interamente posseduta, Life Time, Inc. La struttura emendata include diversi miglioramenti chiave:
- Aumento degli impegni da 475 milioni di dollari a 650 milioni di dollari
- Riduzione del tasso d'interesse flottante di 100 punti base a Term SOFR più un margine del 2,50%
- Riduzione della commissione sugli impegni non utilizzati al 25 punti base
- Prolungamento della scadenza a settembre 2029
La società ha anche estinto i restanti 200 milioni di dollari della sua linea di prestiti a termine. Il CFO Erik Weaver ha espresso soddisfazione per questo primo passo nel rifinanziamento del debito a lungo termine e prevede di affrontare note garantite e non garantite nei prossimi mesi.
Life Time Group Holdings, Inc. (NYSE: LTH) ha anunciado el exitoso refinanciamiento de su línea de crédito revolving a través de su subsidiaria de propiedad absoluta, Life Time, Inc. La instalación enmendada incluye varias mejoras clave:
- Aumento de los compromisos de 475 millones de dólares a 650 millones de dólares
- Reducción de la tasa de interés flotante en 100 puntos base a Term SOFR más un margen del 2,50%
- Reducción de la tasa de la comisión por compromiso no utilizado al 25 puntos base
- Extensión del vencimiento hasta septiembre de 2029
La compañía también pagó los restantes 200 millones de dólares de su línea de préstamo a plazo. El CFO Erik Weaver expresó satisfacción con este primer paso en el refinanciamiento de la deuda a largo plazo y anticipa abordar notas garantizadas y no garantizadas en los próximos meses.
라이프타임 그룹 홀딩스, Inc. (NYSE: LTH)는 완전 자회사인 라이프타임, Inc.를 통해 회전 신용 시설의 성공적인 재융자를 발표했습니다. 개정된 시설에는 몇 가지 주요 개선 사항이 포함되어 있습니다:
- 약정 금액이 4억 7500만 달러에서 6억 5000만 달러로 증가
- 변동 금리가 100bp 감소하여 Term SOFR에 2.50% 마진 추가
- 미사용 약정 수수료율을 25bp로 인하
- 만기를 2029년 9월로 연장
회사는 또한 남은 2억 달러의 기간 대출을 상환했습니다. CFO 에릭 위버는 장기 부채 재융자의 첫 걸음에 대한 만족을 표현하며, 향후 몇 달 안에 보안 및 비보안 노트 문제를 다룰 계획이라고 밝혔습니다.
Life Time Group Holdings, Inc. (NYSE: LTH) a annoncé le succès du refinancement de sa ligne de crédit renouvelable par l'intermédiaire de sa filiale entièrement détenue, Life Time, Inc. La facilité amendée comprend plusieurs améliorations clés :
- Augmentation des engagements de 475 millions de dollars à 650 millions de dollars
- Réduction du taux d'intérêt flottant de 100 points de base à Term SOFR plus une marge de 2,50%
- Abaissement du taux de la commission sur les engagements non utilisés à 25 points de base
- Extension de l'échéance jusqu'à septembre 2029
La société a également remboursé les 200 millions de dollars restants de sa facilité de prêt à terme. Le CFO Erik Weaver a exprimé sa satisfaction à propos de cette première étape dans le refinancement de la dette à long terme et prévoit de traiter les obligations sécurisées et non sécurisées dans les mois à venir.
Life Time Group Holdings, Inc. (NYSE: LTH) hat die erfolgreiche Refinanzierung seiner revolvierenden Kreditfazilität über seine ausschließlich im Besitz befindliche Tochtergesellschaft Life Time, Inc. bekanntgegeben. Die geänderte Fazilität umfasst mehrere wesentliche Verbesserungen:
- Erhöhung der Verpflichtungen von 475 Millionen Dollar auf 650 Millionen Dollar
- Senkung des variablen Zinssatzes um 100 Basispunkte auf Term SOFR plus einer Marge von 2,50%
- Senkung der Gebühr für nicht in Anspruch genommene Verpflichtungen auf 25 Basispunkte
- Verlängerung der Laufzeit bis September 2029
Das Unternehmen hat außerdem die verbleibenden 200 Millionen Dollar seiner Terminkreditfazilität zurückgezahlt. CFO Erik Weaver äußerte Zufriedenheit mit diesem ersten Schritt zur Refinanzierung von Langfristverbindlichkeiten und plant, in den kommenden Monaten die ausstehenden gesicherten und ungesicherten Anleihen anzugehen.
- Increased revolving credit facility commitments by $175 million to $650 million
- Reduced floating interest rate by 100 basis points, lowering borrowing costs
- Extended maturity of revolving credit facility to September 2029
- Paid off remaining $200 million of term loan facility with higher interest rate
- Potential for further interest rate reduction based on financial performance
- None.
Insights
This refinancing move by Life Time is a significant positive development for the company. The upsizing of the revolving credit facility from
The extension of the maturity to September 2029 improves the company's debt profile, while the potential for further margin reduction based on leverage and credit rating targets incentivizes financial discipline. By paying off the
This refinancing positions Life Time well for addressing its secured and unsecured notes in the near future, potentially leading to further improvements in its debt structure and financial health. The market should view this as a vote of confidence from lenders in Life Time's business prospects and financial management.
Life Time's successful refinancing reflects positively on the company's market position and growth prospects in the health and wellness industry. With a portfolio of over 175 athletic country clubs and a growing digital presence, Life Time is well-positioned to capitalize on the increasing consumer focus on health and fitness.
The improved credit terms suggest that lenders view Life Time's business model and expansion strategy favorably. This could translate into enhanced investor confidence and potentially positive stock performance. The company's ability to secure better financing terms amidst a challenging interest rate environment is particularly noteworthy.
Looking ahead, Life Time's plans to address its outstanding secured and unsecured notes in the coming months could further strengthen its financial position. This proactive approach to debt management, coupled with the company's strong market presence and diverse offerings across age groups, indicates a solid foundation for future growth and profitability.
Under the terms of the amended facility, the Company:
- Increased the commitments under the revolving credit facility from
$475 million $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% ; - 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% 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 borrowed under the revolving credit facility and paid the remaining aggregate principal amount of approximately
Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "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. We remain excited about the opportunities in front of us."
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
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its priorities for 2024, growth, and improvements to its balance sheet. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and competitive and economic environment, risks relating to our brand, risks relating to the growth of our business, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 28, 2024, (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the 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 changes did Life Time Group Holdings (LTH) make to its revolving credit facility?
How much did Life Time (LTH) reduce its floating interest rate in the refinancing?
What happened to Life Time's (LTH) term loan facility after the refinancing?
When does Life Time's (LTH) new revolving credit facility mature?
