Life Time Fitness receives new $34 million credit facility
Life Time Fitness (NYSE: LTM) said its wholly owned subsidiary issued variable rate demand notes in the amount of $34.2 million. Proceeds will be used to provide permanent financing for the company's corporate headquarters in Chanhassen, Minn., and a fitness center in Overland Park, Kan.
The notes, which mature on July 1, 2033, bear interest at a variable rate that is adjusted weekly. Initially, this rate is 2.38 percent.
Also, Life Time Fitness exercised a portion of the accordion feature under its existing agreement with U.S. Bank National Association, as the lead arranger. This increase, together with other exercises of the accordion feature during the second quarter, has increased the lenders’ commitment from $400 million to $470 million at current rates and terms. Under the terms of this credit facility, Life Time Fitness may increase the total amount of the facility up to $600 million through further exercise of the accordion feature.
The company said it continues to use the revolving credit facility to finance the construction and development of new centers, and for other general corporate purposes.
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