#United States #Chanhassen #stock offering #Life Time #LTH

Life Time Group Holdings Commences Secondary Offering

Life Time Group Holdings, Inc. (NYSE: LTH) has made headlines by announcing a substantial secondary offering of 23 million shares of its common stock. This action is backed by several affiliated investors including Leonard Green & Partners, TPG Inc., and Partners Group (USA) Inc. This move is not just a routine financial strategy; it comes at a pivotal time for the company, reflecting both a strong market presence and strategic investment decisions.

Details of the Offering

The offering targets the sale of 18 million shares to the public, as outlined in the company’s registration statement with the Securities and Exchange Commission (SEC). Notably, the sale's proceeds will go exclusively to the Selling Stockholders, not the company itself. This distinction highlights the transactional nature of the offering and shows that Life Time is focusing on strengthening shareholder wealth rather than raising new capital for business operations.

Bahram Akradi, the founder and CEO of Life Time, figures prominently in this offering by exercising over 9 million stock options issued to him back in 2015. Out of this, he plans on selling 5 million shares primarily for tax-related expenses. This action will augment Akradi’s total share ownership in Life Time, solidifying his significant stake in the company, which will surpass 15.2 million shares after the offering.

Market Conditions and Underwriters

The success of this offering hinges on prevailing market conditions, and while the company assures that the potential terms and size are subject to change, it has engaged J.P. Morgan and BofA Securities as underwriters for this offering. Investors can expect shares to be available at various pricing methods, reflecting market fluctuations.

Background on Life Time

Life Time, recognized for empowering individuals to lead healthier lives, manages more than 175 athletic country clubs across the United States and Canada. Apart from its vast physical locations, Life Time also offers a digital platform, providing numerous lifestyle programs that encourage healthy living. These initiatives attract a diverse demographic, ranging from young individuals to seniors, showcasing the company's inclusivity in health and wellness.

With a dedicated workforce of over 42,000 professionals, Life Time is not only a fitness club but also orchestrates around 30 high-profile athletic events annually, advocating for a vigorous lifestyle and community engagement.

Conclusion

As Life Time embarks on this substantial offering, stakeholders, investors, and enthusiasts of the brand will be closely monitoring the results. The growth trajectory of Life Time appears robust, especially in light of Akradi’s increased ownership stake, which conveys a strong confidence in the company's future performance. Investors interested in participating should stay updated with the SEC filings and further communications from the company to comprehend the final terms of this offering.

For anyone considering investment, due diligence should be performed, including reviewing the prospectus details available on the SEC website or through the contact resources provided in the company’s announcements. In an ever-evolving marketplace, Land Time's strategic actions such as this could signal potential growth and opportunity for investors aligned with its vision.