Life Time launches $200 million add-on term B at 99.75-par price

By Sara Rosenberg

New York, March 6 – Life Time Inc. launched on Tuesday its $200 million add-on covenant-light term loan B due June 15, 2022 with original issue discount talk of 99.75 to par, according to a market source.

Pricing on the add-on loan is Libor plus 275 basis points with a 1% Libor floor, and the debt has 101 soft call protection through May 2018.

Deutsche Bank Securities Inc., BMO Capital Markets, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Mizuho and Nomura are bookrunners on the deal.

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

Proceeds will be used to repay the current $18 million drawn on the company’s revolver and to add cash to the balance sheet to provide working capital flexibility as Life Time is looking to extend the time between club openings to sale leasebacks to six months from about one month.

Including the add-on, the term loan B will total $1,517,000,000.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.