ClubCorp launches $250 million add-on term loan at Libor plus 350 bps

By Sara Rosenberg

New York, Sept. 4 – ClubCorp Club Operations Inc. held a call on Thursday launching its fungible $250 million add-on senior secured covenant-light term loan due July 24, 2020 at Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99 to 99˝, according to a market source.

The loan has 101 soft call protection for six months, the source said.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the arrangers on the deal.

Commitments are due at 4 p.m. ET on Sept. 11, the source added.

Proceeds will be used to help fund the acquisition of Sequoia Golf.

Other funds for the $265 million acquisition will come from existing liquidity.

Closing is expected on Sept. 30, subject to the amendment of the company’s credit facility to provide the new term loan debt and customary conditions.

In connection with the new loan, pricing on the company’s existing term loan will be increased to match the add-on pricing from Libor plus 300 bps with a 1% Libor floor.

With this transaction, leverage is expected to be around 4.5 times.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs, business, sports, and alumni clubs. Sequoia is an Atlanta-based golf course ownership and management company.

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