Published on 1/28/2021 in the Prospect News High Yield Daily.
New Issue: Life Time sells $475 million 8% 5.25-year notes at par to yield 7.99%
By Paul A. Harris
Portland, Ore., Jan. 28 – Life Time Inc. priced a $475 million issue of 8% 5.25-year senior notes (Caa3/CCC-) at par to yield 7.99% in a Thursday drive-by, according to market sources.
The yield came in the middle of yield talk in the 8% area.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc., BMO Capital Markets Corp., RBC Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. were the joint bookrunners.
The Chanhassen, Minn.-based operator of athletic resorts plans to use the proceeds to refinance its 8½% notes due 2023 and for general corporate purposes.
Life Time's unsecured offer comes just two weeks after the company priced a $925 million issue of 5¾% senior secured notes due 2026 (B3/B-) on Jan. 14.
| Issuer: | Life Time Inc.
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| Amount: | $475 million
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| Maturity: | April 15, 2026
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| Securities: | Senior notes
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| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc., BMO Capital Markets Corp., RBC Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc.
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 7.99%
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| Call protection: | Two years
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| Trade date: | Jan. 28
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| Settlement date: | Feb. 5
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| Ratings: | Moody's: Caa3
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| S&P: CCC-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 8% area
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| Marketing: | Drive-by
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