CHANHASSEN, Minn. - Life Time Group Holdings, Inc. (NYSE: LTH), a health and wellness company, has begun a private offering for $400 million in senior secured notes due 2031. This move is part of a broader refinancing strategy that also includes a new term loan facility projected to reach $1,000 million. The proceeds from this refinancing will be used to retire existing senior secured notes due 2026 and cover related fees and expenses.
The new notes will be backed by guarantees from Life Time's direct parent company, LTF Intermediate Holdings, Inc., and certain subsidiaries. These notes and guarantees will only be available to qualified institutional buyers and non-U.S. persons in transactions exempt from the registration requirements of the Securities Act of 1933.
The offering is part of a refinancing plan that aims to amend the company's existing credit agreement and discharge obligations under its 5.750% Senior Secured Notes due 2026 and 8.000% Senior Notes due 2026. The refinancing is subject to market conditions, and there can be no assurance that it will be completed as described or at all.
Life Time operates over 175 athletic country clubs in the United States and Canada and employs more than 41,000 people. The company is known for its health and wellness programs, as well as its digital app and a variety of athletic events it hosts across the country.
The company has made forward-looking statements regarding the refinancing, which are subject to risks and uncertainties. These statements are based on management's current expectations and are not guarantees of future performance. The company cautions investors not to place undue reliance on these forward-looking statements and does not commit to updating them in the future. This news article is based on a press release statement from Life Time Group Holdings, Inc.
In other recent news, Life Time Group Holdings Inc (NYSE:LTH). has been in the spotlight due to a series of significant developments. The company's preliminary third-quarter results demonstrated a revenue increase of 18.5% year-over-year to $693 million, outperforming the expected $675 million. Adjusted EBITDA also rose by 26% to $180 million, surpassing the forecast of $169 million. These results correspond with the company's plans to refinance debt due in 2026.
Life Time Group's growth was further confirmed by BofA Securities maintaining a Buy rating for the company, with a steady price target of $30.00. This decision followed the company's pre-announcement of third-quarter results, which surpassed expectations. BofA Securities has adjusted its full-year 2024 adjusted EBITDA estimate for Life Time upward from $650 million to $655 million.
In addition to these financial developments, Life Time Group announced its plan to launch an underwritten public offering of 12 million shares of common stock. This move is part of a broader strategy to potentially repay debt. Morgan Stanley and BofA Securities are the lead active book-running managers for this offering.
Life Time Group has also capitalized on the growing popularity of pickleball, expanding its offerings in this sector. This strategic initiative has been recognized by BofA Securities, which raised its price target for the company to $30.00. These are the recent developments for Life Time Group Holdings Inc.
InvestingPro Insights
Life Time Group Holdings' (NYSE: LTH) recent move to refinance its debt through a private offering of $400 million in senior secured notes aligns with the company's current financial position and market performance. According to InvestingPro data, Life Time operates with a significant debt burden, which this refinancing effort aims to address.
The company's market capitalization stands at $5.34 billion, reflecting its substantial presence in the health and wellness industry. Life Time has demonstrated strong financial performance, with revenue reaching $2.41 billion in the last twelve months as of Q2 2023, representing a robust growth of 17.97% year-over-year. This growth is further emphasized by an impressive EBITDA growth of 39.49% over the same period, indicating improved operational efficiency.
InvestingPro Tips highlight that Life Time is trading near its 52-week high, with a substantial price uptick of 85.72% over the last six months. This positive market sentiment is supported by the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
However, investors should note that Life Time is trading at a high P/E ratio of 44.83, which suggests a premium valuation. The PEG ratio of 1.85 indicates that the stock may be trading at a high price relative to its near-term earnings growth potential.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Life Time Group Holdings, providing a more comprehensive view of the company's financial health and market position.
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