Club Car launches $775 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, May 3 – Club Car launched on Monday its $775 million seven-year senior secured term loan (B2) with price talk of Libor plus 400 basis points with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, BofA Securities Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are the arrangers on the deal.

Commitments are due at noon ET on May 12, the source added.

Proceeds will be used to help fund the buyout of the company by Platinum Equity from Ingersoll Rand in a transaction valued at $1.7 billion.

Other funds for the transaction will come from $450 million of notes.

Closing is expected in the third quarter, subject to standard conditions.

Club Car is an Augusta, Ga.-based manufacturer of golf cars, utility, personal transportation and other low-speed vehicles, including all-electric models, and related aftermarket parts and services.

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