Life Time Will Not Use IPO Money Towards Debt

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Life Time Group Holdings will not use the money raised from its recent initial public offering towards its over $2 billion in debt.

According to CEO Bahram Akradi, the fitness club and coworking operator is going to focus its efforts on growing and expanding with the $702 million it raised.

The IPO was priced at $18 per share and offered 39 million shares, which was down from its original plan of offering 46.2 million shares.

Currently, the company has around $2.3 billion in debt and over $6 billion in assets. According to Akradi, over $3 billion of its assets are in real estate and the company could do a sales-leaseback to help with its debt if needed.

“I would have a very different view if we didn’t have assets,” said Akradi. “When you consider that, our balance sheet is very strong.”