Life Time launches $500 million term loan B at Libor plus 275 bps

By Sara Rosenberg

New York, July 31 – Life Time Inc. launched on Wednesday its $500 million seven-year covenant-lite term loan B (B2) with price talk of Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Security is a first priority interest in substantially all tangible and intangible assets, including real estate and capital stock of subsidiaries, of the borrower and the guarantors.

Wells Fargo Securities LLC is the left lead arranger on the deal.

Commitments are due at 1 p.m. ET on Aug. 9.

Proceeds will be used to repay 8½% senior notes due June 15, 2023 and to pay transaction related fees and expenses.

Leonard Green & Partners and TPG Capital are the sponsors.

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

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