Life Time Completes Revolver Upsize and Extension
Rhea-AI Summary
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.
Positive
- 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
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, LTH gained 2.22%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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?
