Life Time announces $699.2 million secondary stock offering

Published 28/02/2025, 12:50
Life Time announces $699.2 million secondary stock offering

CHANHASSEN, Minn. - Life Time Group Holdings, Inc. (NYSE: LTH), a prominent health and wellness company whose stock has surged 128% over the past year, has announced the pricing of its secondary stock offering. According to InvestingPro data, the company has demonstrated strong momentum with revenue growth of 18% in the last twelve months. The offering includes 23 million shares of common stock by certain selling stockholders, which is expected to generate gross proceeds of approximately $699.2 million before underwriting discounts and commissions. The offering comes at a time when Life Time carries a total debt of nearly $4 billion, though InvestingPro analysis indicates net income is expected to grow this year.

The transaction is scheduled to close on March 3, 2025, pending the fulfillment of customary closing conditions. Notably, the proceeds from this offering will go entirely to the selling stockholders, with Life Time not receiving any financial benefit from the sale.

J.P. Morgan and BofA Securities are managing the underwriting process for this offering. They intend to make the shares available to the public at a fixed price, with the specifics of the offering to be outlined in a final prospectus supplement filed with the Securities and Exchange Commission (SEC).

This offering follows the effective filing of an automatic shelf registration statement on Form S-3 with the SEC on August 12, 2024. Prospective investors are encouraged to review the prospectus and related documents available on the SEC’s website or directly from the underwriters to fully understand the terms of the offering.

Life Time operates over 175 athletic country clubs in the United States and Canada and is known for its commitment to healthy living across all age groups, from 90 days to 90+ years old. The company also produces nearly 30 athletic events nationally and supports its communities through a workforce of more than 42,000. With a market capitalization of $6.5 billion and a gross profit margin of 47%, the company currently trades above its Fair Value according to InvestingPro analysis, which offers 12 additional investment tips and a comprehensive Pro Research Report for deeper insights into the company’s financial health.

The company has issued a cautionary note regarding forward-looking statements in the press release, advising readers of the inherent risks and uncertainties that could affect the actual results of the offering.

This news article is based on a press release statement from Life Time Group Holdings, Inc.

In other recent news, Life Time Group Holdings Inc (NYSE:LTH). reported its Q4 2024 earnings, exceeding analyst expectations with an EPS of $0.27 compared to the projected $0.11. The company also surpassed revenue forecasts, reporting $663.3 million against the expected $643.75 million, marking an 18.7% year-over-year increase. For the full year, Life Time’s revenue reached $2.621 billion, up 18.2% from the previous year, with net income doubling to $156.2 million. S&P Global revised Life Time’s outlook to positive from stable, highlighting better-than-expected 2024 results and a supportive financial policy, with the company ending 2024 with a net leverage of about 2.28x. Life Time plans to maintain its net leverage target of 2.25x or below while continuing its expansion strategy by opening 10-12 new clubs annually. Analyst firms have noted Life Time’s strong financial performance and growth prospects, with a focus on expanding digital and in-person offerings. The company’s robust performance and positive outlook are supported by its strategic initiatives and commitment to enhancing member experiences.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.