By Paul A. Harris
Portland, Ore., Dec. 4 – ClubCorp Holdings, Inc. priced a downsized $350 million issue of eight-year senior notes (B3/B-) at par to yield 8¼% on Friday, according to a syndicate source.
The yield printed at the wide end of the 8% to 8¼% yield talk.
Initial guidance was in the high 7% yield context, market sources said.
The deal size was decreased from $400 million, as $50 million of proceeds were shifted to the concurrent term loan which was upsized to $675 million from $625 million.
Citigroup Global Markets Inc. was the left bookrunner for the notes issue. J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. were the joint bookrunners.
The Dallas-based company plans to use the proceeds from its sale of notes for general corporate purposes, including bank debt repayment, and for acquisitions.
ClubCorp manages and operates golf and country clubs, as well as business, sports and alumni clubs in the United States.
| Issuer: | Club Corp Club Operations, Inc.
|
| Amount: | $350 million, decreased from $400 million
|
| Maturity: | Dec. 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co.
|
| Co-manager: | PNC Capital Markets
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 612 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2018, then callable at 106.188
|
| Equity clawback: | 40% at 108.25 until Dec. 15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 4
|
| Settlement date: | Dec. 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% to 8¼%
|
| Marketing: | Roadshow
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