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Life Time Fitness lifts term B to $1.25 billion, lowers price talk
By Sara Rosenberg
New York, June 3 – Life Time Fitness Inc. (LTF Merger Sub Inc.) upsized its seven-year covenant-light term loan B to $1.25 billion from $1.1 billion and reduced price talk to Libor plus 325 basis points to 350 bps from Libor plus 350 bps to 375 bps, according to a market source.
The term loan B still has a 1% Libor floor and an original issue discount in the 99.5 area.
The company’s now $1.5 billion credit facility, up from $1.35 billion, also includes a $250 million revolver.
Recommitments are due at 10:30 a.m. ET on Thursday, the source said.
Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC, BMO Capital Markets Corp., RBC Capital Markets LLC, Macquarie Capital (USA) Inc., Nomura and Mizuho are the bookrunners on the deal.
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 $450 million of senior notes, downsized from $600 million with the term loan B upsizing, and a $900 million sale leaseback.
Closing is expected this month, 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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