Life Time Fitness to launch $1.35 billion credit facility on Monday

By Sara Rosenberg

New York, May 14 – Life Time Fitness Inc. (LTF Merger Sub Inc.) is scheduled to hold a bank meeting at noon ET in New York on Monday to launch a $1.35 billion credit facility, according to a market source.

The company will then hold East Coast one-on-one meetings on Tuesday and Wednesday.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC, BMO Capital Markets, RBC Capital Markets, Macquarie Capital (USA) Inc., Nomura and Mizuho are the bookrunners on the deal.

The facility consists of a $250 million revolver and a $1.1 billion seven-year covenant-light term loan B, the source said.

Commitments are due on June 2.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners and TPG for $72.10 per share in cash. The transaction is valued at more than $4 billion.

Other key investors in the buyout include LNK Partners and Life Time Fitness chairman, president and chief executive officer Bahram Akradi, who will remain in his role and has committed to make a rollover investment of $125 million in common stock.

In addition to the credit facility, funds for the transaction will come from $600 million of senior notes and a $900 million sale leaseback, the source added.

Closing is expected in the first week of June, subject to shareholder approval and other customary conditions.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

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