Life Time launches $274 million term loan B at SOFR plus 475 bps

By Sara Rosenberg

New York, May 1 – Life Time Inc. as scheduled to hold a lender call at 2 p.m. ET on Monday to launch a roughly $274 million covenant-lite term loan B due January 2026 that is talked at SOFR+CSA plus 475 basis points with a 25 bps step-down at B2/B corporate ratings, a 0.5% floor and an original issue discount of 99 to 99.5, according to a market source.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The term loan has 101 soft call protection for six months, the source said.

Existing facility ratings are B2/B+, and existing corporate ratings are B3/B-.

Deutsche Bank Securities Inc. is the left bookrunner on the deal.

Commitments are due at 5 p.m. ET on Thursday.

Proceeds will be used to refinance an existing term loan due December 2024.

Cashless roll is available, the source added.

The new term loan is coterminous with the company’s existing 5¾% senior secured notes.

Life Time is a Chanhassen, Minn.-based operator of athletic resorts offering amenities for fitness and wellness, family recreation and healthy living.

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