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ClubCorp ups term loan B to $675 million, cuts bonds to $350 million
By Sara Rosenberg
New York, Dec. 4 – ClubCorp Club Operations Inc. upsized its seven-year senior secured covenant-light term loan B to $675 million from $625 million and downsized its senior unsecured notes offering to $350 million from $400 million, according to a market source.
Price talk on the loan is still Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99.5.
Included in the B loan is 101 soft call protection for six months, and there is no amortization.
Mandatory prepayments are from an excess cash flow sweep, subject to a leverage-based grid, 100% of asset sale proceeds, subject to reinvestment rights, and 100% of debt issuance proceeds, other than permitted debt.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the joint lead arrangers on the deal, with Citigroup as the administrative agent.
Commitments continue to be due on Monday, the source added.
Closing is expected on Dec. 15.
Proceeds from the term loan and notes will be used to refinance the company’s existing credit facility and for general corporate purposes, including the execution of ClubCorp’s growth strategy.
In addition, the company said in an 8-K filed recently with the Securities and Exchange Commission that it intends to increase its revolving credit facility to $175 million from $135 million and extend the maturity to five years from closing on the increase.
ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.
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