Moody’s ups ClubCorp PDR, rates loans, notes

Moody's Investors Service said it affirmed ClubCorp Club Operations, Inc.'s corporate family rating at B1 and its speculative grade liquidity rating of SGL-1 following the company's announcement that it plans to upsize its revolver and repay a portion of its existing term loan with proceeds from a proposed notes offering.

At the same time, the agency upgraded the probability of default rating to B1-PD from B2-PD, which is in line with the corporate family rating, due to a change in the mix of debt in the company's capital structure resulting in the expected family recovery rate being reduced to 50% from 65%.

Moody’s also assigned a Ba1 (LGD1) rating to the $175 million super priority senior secured revolving credit facility due 2021, Ba3 (LGD3) to the $625 million senior secured term loan B due 2022 and B3 (LGD5) to the $400 million senior unsecured notes due 2023.

The bank facilities are viewed as new debt instruments by Moody's due to the extended maturity dates.

ClubCorp's existing senior debt ratings will be withdrawn upon the close of the proposed transaction.

The outlook remains stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.