Life Time Closes on $150 Million Sale-Leaseback Transaction; Credit Rating Upgraded by S&P

Life Time Group Holdings (NYSE: LTH) has completed a $150 million sale-leaseback transaction for three properties, with plans to execute an additional $100 million in sale-leasebacks throughout 2025.

Rhea-AI Summary

Life Time Group Holdings (NYSE: LTH) has completed a $150 million sale-leaseback transaction for three properties, with plans to execute an additional $100 million in sale-leasebacks throughout 2025. The company received a credit rating upgrade from S&P to 'BB-' from 'B+', citing strong operating performance and reduced leverage.

Following the ratings upgrade and existing Fitch rating, Life Time's credit facility margin improved by 25 basis points effective June 19, 2025. Combined with their April interest rate swap agreement, the company's term loan facility now has an effective interest rate of 5.659%. The company operates over 180 athletic country clubs across the US and Canada.

Positive

• Successful completion of $150 million sale-leaseback transaction
• Credit rating upgrade to 'BB-' from 'B+' by S&P
• Credit facility margin improved by 25 basis points
• Strong operating performance with growth in memberships and dues
• Additional $100 million in sale-leasebacks planned for 2025

Negative

• Increased lease obligations from sale-leaseback transactions
• Still maintaining relatively high interest rate at 5.659% on term loan facility

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CHANHASSEN, Minn., June 23, 2025 /PRNewswire/ -- Life Time Group Holdings, Inc. (NYSE: LTH) ("Life Time" or "the Company") today announced that it has closed on its sale-leaseback transaction of three properties for approximately $150 million in gross proceeds. Terms were similar to previous transactions. Additional details were not disclosed.

Additionally, on June 18, 2025, prior to the completion of the sale-leaseback transaction, S&P Global Ratings ("S&P") upgraded the Company's issuer credit rating to 'BB-' from 'B+'. As reasons for the upgrade, S&P cited the Company's strong operating performance – a result of growth in memberships, dues, member engagement, and demand for in-center offerings – and reduced leverage and financial sponsor ownership.

Due to this ratings upgrade and the existing 'BB-' issuer rating from Fitch Ratings, Life Time's credit facility margin improved by 25 basis points effective June 19, 2025. In combination with the interest rate swap agreement executed April 8, 2025, the effective interest rate of the Company's term loan facility is now 5.659%.

Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "We're pleased to have completed this sale-leaseback transaction and expect to execute a minimum of $100 million in additional sale-leasebacks over the remainder of 2025. Combined with our reduced cost of debt, this transaction further enhances our ability to advance a robust club pipeline while maintaining our focus on capital efficiency and financial health."

About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 180 athletic country clubs across the United States and Canada, the complimentary, comprehensive Life Time app and nearly 30 of the most iconic athletic events in the country. The health and wellness pioneer uniquely serves people 90 days to 90+ years old through its healthy living, healthy aging, healthy entertainment communities and ecosystem, along with a range of healthy way of life programs and information, and highly trusted LTH nutritional supplements and products. Life Time was recently certified as a Great Place to Work®, reinforcing its commitment to fostering an exceptional workplace culture on behalf of its more than 43,000 dedicated team members.

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SOURCE Life Time Group Holdings, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the value of Life Time's (LTH) recent sale-leaseback transaction?

Life Time completed a $150 million sale-leaseback transaction involving three properties, with plans for an additional $100 million in sale-leasebacks through 2025.

What is Life Time's (LTH) new credit rating from S&P?

S&P upgraded Life Time's credit rating to 'BB-' from 'B+' on June 18, 2025, citing strong operating performance and reduced leverage.

How much did Life Time's (LTH) credit facility margin improve?

Life Time's credit facility margin improved by 25 basis points effective June 19, 2025, resulting in a new effective interest rate of 5.659% on their term loan facility.

How many athletic clubs does Life Time (LTH) currently operate?

Life Time operates more than 180 athletic country clubs across the United States and Canada.

What are Life Time's (LTH) additional sale-leaseback plans for 2025?

Life Time plans to execute a minimum of $100 million in additional sale-leaseback transactions over the remainder of 2025.