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

1. Life Time closed a sale-leaseback transaction for $150 million. 2. S&P upgraded Life Time's credit rating to 'BB-' due to strong performance. 3. Credit facility margin improved 25 basis points after the rating upgrade. 4. Life Time plans additional sale-leasebacks of at least $100 million by end of 2025.

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FAQ

Why Bullish?

The sale-leaseback enhances liquidity, aiding investment in growth and operations, similar to past positive reactions seen in other retail and service companies following asset sales.

How important is it?

The article indicates substantial financial maneuvering and growth potential, key factors affecting LTH’s valuation.

Why Long Term?

The sustained improvement in credit ratings and anticipated future sales will provide a solid financial foundation, as seen in companies that stabilize through strategic asset management, benefiting their stock over time.

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, /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 TimeLife 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. SOURCE Life Time Group Holdings, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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