Moody's assigns Arcis Golf, loans B2

Moody's Investors Service said it assigned first-time ratings to Arcis Golf, LLC, including a B2 corporate family rating, a B2-PD probability of default rating and a B2 rating for its first-lien credit facilities consisting of a $75 million revolver due 2026 and a $300 million term loan due 2028.

“Arcis' B2 CFR broadly reflects its small scale as measured by revenue and moderately high leverage (high 4x for the LTM period ended June 30, 2021, pro forma for this transaction and recent acquisitions). The company's core business as a golf club owner and operator makes it susceptible to discretionary consumer spending and factors such as varying regional economic and weather conditions,” Moody’s said in a press release.

Term loan proceeds will be used to refinance $255 million of borrowings, pay related fees with the remaining amount added to cash on balance sheet with which Moody's expects the company to pursue acquisitions.

The outlook is stable.

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