Life Time sets call for $200 million term loan B add on for Tuesday

New York, March 2 – Life Time, Inc. will launch a $200 million add on to its term loan B due June 15, 2022 with a lender call at 11 a.m. ET on March 6, according to a market source.

The call will also cover the company’s fourth quarter results.

With the add on, the term loan B will increase to $1,517,000,000 in size.

The coupon is Libor plus 275 basis points and there is a 1% floor for Libor.

Existing call protection is a 101 soft call through May 2018.

The loan has no financial covenants.

Proceeds will be used to repay the $18 million currently drawn on the company’s revolver and to add cash to the balance sheet in order to increase working capital flexibility. The company is looking to extend the time from club openings to sale leasebacks to six months from approximately one month.

Deutsche Bank, BMO, Jefferies, KKR, Macquarie, Mizuho and Nomura are bookrunners with Deutsche on the left. Other banks are to be announced.

Commitments are due by 5 p.m. ET on March 13.

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

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