S&P revises ClubCorp view to negative

S&P said it affirmed the B issuer credit rating on ClubCorp Holdings, Inc., the B+ issue-level rating on the company's senior secured credit facility, which consists of the $175 million revolving credit facility due 2022 and $1.175 billion term loan B due 2024, and the CCC+ issue-level rating on ClubCorp's $425 million senior unsecured notes due 2025.

S&P also revised the outlook on the issuer credit rating to negative from stable.

“The negative outlook reflects our revised expectation that ClubCorp and its financial sponsor owner Apollo Global Management, LLC will sustain capital expenditures and SG&A costs at an elevated level, resulting in lowered profitability and total lease-adjusted debt to EBITDA of mid-8x in 2018, which is weak compared to our 7.75x downgrade threshold on the company,” S&P said in a news release.

“Our updated expectations reflect a shift in ClubCorp's capital allocation strategy compared to one year ago.”

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