ClubCorp firms $675 million term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, Dec. 8 – ClubCorp Club Operations Inc. finalized pricing on its $675 million seven-year senior secured covenant-light term loan B (Ba3/BB-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Earlier in syndication, the term loan B was upsized from $625 million as the company’s senior unsecured notes offering was downsized to $350 million from $400 million.

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.

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.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.