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. 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.
Life Time Group Holdings (NYSE: LTH) ha completato una operazione di sale-leaseback da 150 milioni di dollari per tre proprietà, con l'intenzione di realizzare ulteriori 100 milioni di dollari in operazioni simili nel corso del 2025. L'azienda ha ottenuto un miglioramento del rating creditizio da S&P, che è passato da 'B+' a 'BB-', grazie a una solida performance operativa e a una riduzione della leva finanziaria.
A seguito dell'upgrade del rating e del rating Fitch già esistente, il margine della linea di credito di Life Time è migliorato di 25 punti base a partire dal 19 giugno 2025. In combinazione con l'accordo di swap sui tassi di interesse stipulato in aprile, il tasso di interesse effettivo sul prestito a termine dell'azienda è ora del 5,659%. La società gestisce oltre 180 club sportivi in stile country club negli Stati Uniti e in Canada.
Life Time Group Holdings (NYSE: LTH) ha finalizado una transacción de venta y arrendamiento posterior por 150 millones de dólares para tres propiedades, con planes de ejecutar otros 100 millones de dólares en operaciones similares durante 2025. La compañía recibió una mejora en su calificación crediticia de S&P, pasando de 'B+' a 'BB-', debido a un sólido desempeño operativo y una reducción del apalancamiento.
Tras la mejora en la calificación y la calificación Fitch existente, el margen de la línea de crédito de Life Time mejoró en 25 puntos básicos a partir del 19 de junio de 2025. Sumado al acuerdo de swap de tasas de interés firmado en abril, la tasa de interés efectiva del préstamo a plazo de la compañía es ahora del 5.659%. La empresa opera más de 180 clubes deportivos tipo country club en Estados Unidos y Canadá.
Life Time Group Holdings (NYSE: LTH)는 세 개의 부동산에 대해 1억 5천만 달러 규모의 매각 후 재임대 거래를 완료했으며, 2025년 동안 추가로 1억 달러 규모의 매각 후 재임대 거래를 실행할 계획입니다. 회사는 강력한 운영 성과와 부채 비율 감소를 이유로 S&P 신용 등급이 'B+'에서 'BB-'로 상향 조정되었습니다.
등급 상향과 기존 Fitch 등급에 따라, Life Time의 신용 시설 마진은 2025년 6월 19일부터 25 베이시스 포인트 개선되었습니다. 4월에 체결한 이자율 스왑 계약과 결합하여 회사의 기간 대출 시설의 실질 금리는 현재 5.659%입니다. 이 회사는 미국과 캐나다 전역에서 180개 이상의 운동 컨트리 클럽을 운영하고 있습니다.
Life Time Group Holdings (NYSE : LTH) a finalisé une transaction de cession-bail de 150 millions de dollars portant sur trois propriétés, avec des projets d'exécuter 100 millions de dollars supplémentaires de cessions-bails tout au long de 2025. L'entreprise a obtenu une amélioration de sa notation de crédit par S&P, passant de 'B+' à 'BB-', en raison de solides performances opérationnelles et d'une réduction de l'endettement.
Suite à cette amélioration de notation et à la notation existante de Fitch, la marge de la facilité de crédit de Life Time s'est améliorée de 25 points de base à compter du 19 juin 2025. Combiné à leur accord de swap de taux d'intérêt d'avril, le taux d'intérêt effectif de la facilité de prêt à terme de l'entreprise est désormais de 5,659%. La société exploite plus de 180 clubs sportifs de type country club aux États-Unis et au Canada.
Life Time Group Holdings (NYSE: LTH) hat eine Sale-and-Leaseback-Transaktion über 150 Millionen US-Dollar für drei Immobilien abgeschlossen und plant, im Laufe des Jahres 2025 weitere 100 Millionen US-Dollar in Sale-and-Leaseback-Geschäften umzusetzen. Das Unternehmen erhielt von S&P ein Rating-Upgrade von 'B+' auf 'BB-', basierend auf starker operativer Leistung und reduzierter Verschuldung.
Nach dem Rating-Upgrade und dem bestehenden Fitch-Rating verbesserte sich die Kreditfazilitätsmarge von Life Time ab dem 19. Juni 2025 um 25 Basispunkte. In Kombination mit dem im April abgeschlossenen Zinsswap-Vertrag liegt der effektive Zinssatz der Terminkreditfazilität des Unternehmens nun bei 5,659%. Das Unternehmen betreibt über 180 sportliche Country Clubs in den USA und Kanada.
- 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
- Increased lease obligations from sale-leaseback transactions
- Still maintaining relatively high interest rate at 5.659% on term loan facility
Insights
Life Time strengthens financial position through $150M sale-leaseback, credit upgrade, and reduced debt costs, supporting expansion while improving capital efficiency.
Life Time has completed a
The credit rating upgrade is particularly noteworthy as it triggered a
The sale-leaseback strategy represents a capital-efficient approach to monetizing real estate assets while maintaining operational control. By converting property ownership into long-term lease agreements, Life Time unlocks capital that can be deployed toward their expansion pipeline without incurring additional debt. Management has indicated plans for at least
S&P specifically cited membership growth, increased dues collection, heightened member engagement, and stronger demand for in-center offerings as key drivers behind the company's improved operating performance. The reduced financial sponsor ownership also suggests a transition toward a more independent corporate structure with potentially greater management autonomy.
With a current footprint of over 180 athletic clubs across North America and a workforce exceeding 43,000 employees, Life Time appears well-positioned to execute its growth strategy while maintaining the improved financial health that earned its ratings upgrade.
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
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
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
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SOURCE Life Time Group Holdings, Inc.
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