Club Car talks $450 million eight-year notes to yield in 6 3/8% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., May 11 – Club Car LLC talked its $450 million offering of eight-year senior notes (Caa2/CCC+) to yield in the 6 3/8% area, according to market sources.

Official talk comes tight to initial guidance in the high 6% area.

Books close at 11 a.m. ET on Wednesday.

BofA Securities Inc. is the left bookrunner. Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are joint bookrunners.

The Rule 144A for life notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the full coupon and a 101% poison put.

The issuing entity will be special purpose vehicle MajorDrive Holdings IV, LLC.

Proceeds plus an equity investment and new credit facilities will be used to fund Platinum Equity’s acquisition of Club Car.

Platinum Equity is acquiring the Augusta, Ga.-based manufacturer of golf carts and other low-speed vehicles from Ingersoll Rand in a transaction valued at $1.7 billion and expected to close in the third quarter.

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