Moody’s assigns B2 to Life Time loan

Moody's Investors Service said it assigned a B2 rating to Life Time Inc.’s proposed $500 million term loan.

Proceeds from the loan will be used to repay Life Time’s $450 million of 8˝% senior notes that became callable in June. The loan, priced at Libor plus 275 basis points, has a lower interest rate than the notes, lowering the company’s cost of capital, Moody’s said.

The agency downgraded the company’s senior secured first-lien revolver and term loan ratings to B2 from B1.

Moody’s also affirmed Life Time’s B2 corporate family rating and B2-PD probability of default.

The outlook remains stable.

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