ClubCorp increases term loan B size by $50 million, downsizes bonds

By Sara Rosenberg

New York, Aug. 15 – ClubCorp Holdings Inc. upsized its seven-year covenant-light term loan B to $1,175,000,000 from $1,125,000,000 and downsized its bond offering to $425 million from $475 million, according to a market source.

Talk on the term loan is Libor plus 325 basis points with a step-down to Libor plus 300 bps at less than 3.25 times net first-lien leverage, a 0% Libor floor and an original issue discount of 99.5.

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

Mandatory prepayments are from 50% of excess cash flow, stepping down to 25% and 0% at 0.5 times and 1 times inside closing date net first-lien leverage ratio, respectively, 100% of asset sale proceeds, stepping down to 50% and 0% at 0.75 times and 1.25 times inside closing date net first-lien leverage and subject to reinvestment rights, and 100% of debt issuance proceeds other than permitted debt, the source continued.

The company’s now $1.35 billion of senior secured credit facilities (B1/B+), up from $1.3 billion, also include a $175 million revolver.

Citigroup Global Markets Inc., RBC Capital Markets LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the lead banks on the debt.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management LLC for $17.12 per share in cash, or about $1.1 billion.

Other funds for the transaction are expected to come from about $675 million of equity.

Closing is expected in mid-September, subject to shareholder approval and other customary conditions.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

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