ClubCorp, Equinix deal changes surface; TI Group and Acrisure join new-issue calendar

By Sara Rosenberg

New York, Dec. 4 – ClubCorp Club Operations Inc. on Friday increased the size of its term loan B, and Equinix Inc. set U.S. dollar and sterling term loan B tranche sizes, tightened the original issue discount on the U.S. piece and firmed the issue price at the tight end of guidance on its sterling piece.

In more primary happenings, TI Group Automotive Systems LLC and Acrisure LLC emerged with plans to bring add-on term loans to market.

ClubCorp upsizes

ClubCorp raised its seven-year senior secured covenant-light term loan B to $675 million from $625 million in reaction to trimming its senior unsecured notes offering to $350 million from $400 million, a market source remarked.

The loan is still talked at Libor plus 325 basis points to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments continue to be due on Monday, and closing is expected on Dec. 15.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the loan that will be used with the notes to refinance an existing credit facility and for general corporate purposes, including the execution of ClubCorp’s growth strategy.

The company also plans to increase its revolver to $175 million from $135 million and extend the maturity to five years from closing on the increase.

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

Equinix tweaks deal

Equinix finalized its U.S. seven-year covenant-light term loan B (Ba2/BBB-) at a size of $250 million and revised the original issue discount to 99.75 from talk of 99 to 99.5, according to a market source.

As before, the U.S. term loan is priced at Libor plus 325 bps with a 0.75% Libor floor.

Additionally, the sterling seven-year covenant-light term loan B (Ba2/BBB-) firmed at £300 million and the discount was set at 99.5, the tight end of the 99 to 99.5 talk, while pricing was left intact at Libor plus 375 bps with a 0.75% Libor floor, the source said.

The loan launched with a description of $700 million equivalent, with U.S. dollar and sterling sizes to be determined.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets and TD Securities (USA) LLC are leading the deal.

Equinix funding acquisition

Proceeds from Equinix’s term debt, the sale of common stock, $1.1 billion of bonds and cash on hand will be used to finance the purchase of TelecityGroup plc.

Closing on the acquisition is expected early in the first half of 2016.

Equinix is a Redwood City, Calif.-based interconnection and data center company. Telecity is a London-based carrier-neutral data center and colocation center provider.

TI Group readies deal

Also in the primary, TI Group Automotive set a call for Tuesday to launch a fungible $100 million add-on term loan, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

The company’s existing term loan is priced at Libor plus 350 bps with a 1% Libor floor.

TI Group is an Oxford, U.K.-based provider of fluid storage, carrying and delivery systems to automotive manufacturers.

Acrisure on deck

Acrisure scheduled a lender call for Monday to launch a fungible $100 million add-on term loan talked at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 97, according to a market source.

With the add-on, the company will increase pricing on its existing term loan to Libor plus 550 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor, and all of the term loan debt will get 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisitions.

Acrisure is a Caledonia, Mich.-based retail insurance brokerage.

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