Life Time Group (NYSE: LTH) cuts margin on $985M 2026 term loan facility
Rhea-AI Filing Summary
Life Time Group Holdings, Inc., through its subsidiary Life Time, Inc., entered into a Sixteenth Amendment to its Credit Agreement on August 12, 2026. The amendment refinances the existing $985 million 2026 Term Loan Facility, reducing the interest rate margin by 0.25% to 1.75%.
After giving effect to associated interest rate swaps that hedge the variable interest payments, the borrowings under the 2026 Term Loan Facility now carry an effective fixed interest rate of 5.159%. The loans under this facility were issued at par with no original issue discount, and the facility’s maturity remains November 5, 2031, so the amendment primarily affects pricing rather than tenor.
The amendment also constitutes a direct financial obligation for the registrant under its existing capital structure, with Deutsche Bank AG New York Branch continuing to act as administrative agent. No new off-balance sheet arrangements are created in connection with this change.
Positive
- Refinancing of the $985 million 2026 Term Loan Facility reduces the interest rate margin by 0.25% to 1.75%, lowering ongoing interest cost.
- Interest rate swaps result in an effective fixed rate of 5.159% on the 2026 Term Loan Facility, providing greater visibility on future interest payments.
Negative
- None.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
2026 Term Loan Facility Size: $985 million
Interest Margin After Amendment: 1.75%
Interest Margin Reduction: 0.25%
+3 more
6 metrics
2026 Term Loan Facility Size
$985 million
Principal amount of the 2026 Term Loan Facility subject to the amendment
Interest Margin After Amendment
1.75%
Interest rate margin on the 2026 Term Loan Facility following the Sixteenth Amendment
Interest Margin Reduction
0.25%
Decrease in the interest rate margin under the refinanced 2026 Term Loan Facility
Effective Fixed Interest Rate
5.159%
Effective fixed rate on the 2026 Term Loan Facility after interest rate swaps
Maturity Date
November 5, 2031
Stated maturity of the 2026 Term Loan Facility after the amendment
Amendment Number
Sixteenth
Sixteenth Amendment to the existing Credit Agreement
Key Terms
Sixteenth Amendment to Credit Agreement, 2026 Term Loan Facility, original issue discount, interest rate swaps, +1 more
5 terms
Sixteenth Amendment to Credit Agreement financial
"entered into that certain Sixteenth Amendment to Credit Agreement (the “Amendment”)"
2026 Term Loan Facility financial
"refinancing of the $985 million term loan facility (the “2026 Term Loan Facility”)"
original issue discount financial
"Loans under the 2026 Term Loan Facility were issued at par with no original issue discount."
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
interest rate swaps financial
"as a result of the interest rate swaps that are hedging the variable interest payments"
A contract between two parties to exchange streams of interest payments, typically swapping a fixed-rate payment for a floating-rate payment or vice versa. Think of it like two neighbors agreeing to trade the type of mortgage payments they make to reduce uncertainty or take advantage of expected rate moves; investors care because swaps change a company’s borrowing costs and risk exposure, which can materially affect cash flow, creditworthiness, and valuation.
direct financial obligation financial
"Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet"
FAQ
What credit facility did Life Time Group Holdings (LTH) amend on August 12, 2026?
Life Time Group Holdings amended its 2026 Term Loan Facility, a $985 million term loan under its existing Credit Agreement, through a Sixteenth Amendment executed on August 12, 2026.
How did the interest rate margin change on LTH’s 2026 Term Loan Facility?
The interest rate margin on Life Time’s 2026 Term Loan Facility was reduced by 0.25% to 1.75%. This change directly lowers the borrowing spread paid over the applicable reference rate.
What is the new effective interest rate on Life Time Group Holdings’ (LTH) 2026 Term Loan Facility?
After the amendment and related swaps, the 2026 Term Loan Facility now has an effective fixed interest rate of 5.159%, reflecting the hedged cost of the variable interest payments.
Did the maturity date of LTH’s 2026 Term Loan Facility change with this amendment?
The amendment did not change the maturity date. The 2026 Term Loan Facility continues to mature on November 5, 2031, so the modification is focused on pricing, not tenor.
Were there any discounts applied to the refinanced term loans for Life Time Group Holdings (LTH)?
The loans under the 2026 Term Loan Facility were issued at par with no original issue discount, meaning the principal equals the amount funded with no upfront discount.
AI-generated analysis. How Rhea-AI works. Not financial advice.
