S&P cuts Arcis loans, rates loan B+

S&P said it lowered its issue-level rating on Arcis Golf LLC's planned upsized $460 million term loan due in 2028 and $75 million revolving credit facility due in 2026 to B+ from BB-. It also revised the recovery rating to 2 from 1 because of the proposed first-lien incremental $160 million term loan and first-lien incremental $40 million delayed-draw term loan.

The incremental $160 million term loan is fungible with the original $300 million term loan upon the close of the transaction. S&P also assigned B+ issue-level and 2 recovery ratings to the planned $40 million delayed-draw term loan due 2028, which will become fungible with the existing term loan when funded.

The company will use the incremental term loans cash from its balance sheet to buy more clubs and to cover related transaction fees and expenses.

The outlook is stable.

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