S&P rates Topgolf loan B-

S&P said it assigned a B- issuer credit rating to Topgolf International Inc., along with a B- rating and 3 recovery rating to the company's proposed first-lien facility.

Topgolf International Inc. plans to issue a $325 million first-lien term loan due in 2026 and a $175 million revolving credit facility due in 2024 to refinance its existing term loan and revolver.

The proceeds will be used to fund growth plans, S&P said.

The outlook is stable, despite sustained high adjusted leverage at higher than 10x and weak EBITDA cash interest coverage of less than 2x expected through 2020, the agency said.

This is because S&P said it expects the company will maintain adequate liquidity and access to external financing to complete its current venue growth plan.

The ratings reflect the company's small EBITDA base and its concentrated revenue in just three U.S. states, S&P said.

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