Life Time launches $310 million term loan B at SOFR plus 400 bps

By Sara Rosenberg

New York, Nov. 27 – Life Time Inc. was scheduled to hold a lender call at 3 p.m. ET on Monday to launch a $310 million covenant-lite term loan B due January 2026 that is talked at SOFR+CSA plus 400 basis points with a 0.5% floor and a par issue price, 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.

Expected term loan ratings are B1/BB-.

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

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to reprice an existing term loan B that was completed earlier this year at pricing of SOFR+ARRC CSA plus 475 bps with a 25 bps step-down at B2/B corporate ratings and a 0.5% floor. Current corporate ratings are B2/B.

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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