S&P affirms Life Time debt

S&P said it affirmed its BB- issue-level rating on Life Time Inc.'s senior secured debt following the announcement that it plans to increase its revolving credit facility commitment by $110 million and add $200 million to its senior secured term loan B.

The senior secured credit facility consists of a proposed $360 million revolving credit facility due 2020 and a proposed $1.55 billion term loan B due 2022.

The 1 recovery rating indicates an expectation of very high (90% to 100%; rounded estimate: 90%) recovery for lenders in the event of a payment default.

The agency also affirmed the CCC+ issue-level rating on Life Time's $450 million senior unsecured notes due 2023. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery.

Although S&P said it expects leverage under the proposed transaction to be around 7x in 2018 compared to the prior mid-6x forecast, the B corporate credit rating and stable outlook are unchanged.

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