Life Time Completes Revolver Upsize and Extension
September 23, 2024
Source: Yahoo Finance
Under the terms of the amended facility, the Company:
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Increased the commitments under the revolving credit facility from $475 million to $650 million;
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Reduced the floating interest rate per annum by 100 basis points to Term Secured Overnight Financing Rate ("SOFR") plus an applicable margin of 2.50%;
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Reduced the undrawn commitment fee rate to 25 basis points; and,
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Extended the maturity of the revolving credit facility to September 2029, subject to the same springing maturity based on the Company's secured and unsecured notes.
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Additionally, the applicable margin of 2.50% will decrease up to 50 basis points upon the Company achieving certain first lien net leverage ratio and credit rating targets.
In connection with the refinancing, the Company borrowed under the revolving credit facility and paid the remaining aggregate principal amount of approximately $200 million outstanding under its term loan facility that had an interest rate of SOFR plus 4.00%. No borrowings under the term loan facility remain outstanding.
Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "We're pleased to complete this first step in refinancing our long-term debt. We believe the strength of our business and the progress we've made toward achieving our financial objectives put us in a great position not only to execute this successful refinancing, but also to address our outstanding secured and unsecured notes in the coming months. We remain excited about the opportunities in front of us."
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 175 athletic country clubs across the United States and Canada. The health and wellness pioneer also delivers a range of healthy way of life programs and information via its complimentary Life Time Digital app. The Company's healthy living, healthy aging, healthy entertainment communities and ecosystem serve people 90 days to 90+ years old and is supported by a team of more than 45,000 dedicated professionals. In addition to delivering the best programs and experiences through its clubs, Life Time owns and produces nearly 30 of the most iconic athletic events in the country.
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