Club Car sets Thursday investor call for $450 million eight-year notes offering; talk high 6% area

By Paul A. Harris

Portland, Ore., May 3 – Club Car LLC scheduled an investor conference call at 11 a.m. ET on Thursday for its $450 million offering of eight-year senior notes (Caa2), according to market sources.

Initial guidance has the notes yielding in the high 6% area, a trader said.

A roadshow will run from Thursday through May 11.

The Rule 144A for life offering is expected to price on May 13.

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 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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