ClubCorp Holdings Retires High Yield Notes and Anticipates Interest Savings of $14 Million Annually
DALLAS – ClubCorp, The World Leader in Private Clubs® (NYSE: MYCC). ClubCorp announces the redemption in full of approximately $270 million in principal of its 10% senior notes. The redemption date will be as of May 11, 2014.
The redemption will be funded with $350 million in additional senior secured term loans under its existing term loan facility. As a result the company expects to realize approximately $14 million net annualized interest savings.
The add-on term loans will also bear interest at the greater of 4.0% or an elected LIBOR plus 3.0% and will mature on July 24, 2020. In addition, the senior secured leverage ratio under ClubCorp’s credit agreement has been eased as it relates to mandatory prepayments, the secured leverage maintenance covenant on the $135 million credit revolver facility and further borrowings.
Additionally, the company will repay its outstanding balance of $11.2 million on the credit revolver facility. After paying the make whole premium, accrued interest, related fees and expenses on the senior notes, net loan proceeds will be approximately $25 million and will be used for general corporate purposes. This transaction would modestly increase 2013 existing net leverage from 3.1x to 3.4x of net debt to adjusted EBITDA(1).
Curt McClellan, chief financial officer and treasurer: “By optimizing our capital structure and reducing interest payments on our debt, we are improving our liquidity and flexibility to pursue and fund our growth strategies—including reinventions and acquisitions. These strategies will continue to add value to our members and shareholders, and we appreciate the continued support of our lenders.”
About ClubCorp (NYSE: MYCC)
Since its founding in 1957, Dallas-based ClubCorp has operated with the central purpose of Building Relationships and Enriching Lives®. ClubCorp is a leading operator of private golf and country clubs, business, sports, and alumni clubs in North America. ClubCorp owns or operates a portfolio of more than 150 golf and country clubs, business clubs, sports clubs, and alumni clubs in 25 states, the District of Columbia and two foreign countries that serve over 370,000 members, with approximately 15,000 peak-season employees. ClubCorp Holdings, Inc. is a publicly traded company on the New York Stock Exchange (NYSE: MYCC). ClubCorp properties include: Firestone Country Club (Akron, Ohio); Mission Hills Country Club (Rancho Mirage, California); Capital Club Beijing; and Metropolitan Club Chicago. You can find ClubCorp on Facebook at facebook.com/clubcorp and on Twitter at @ClubCorp.
(1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the reconciliation available on the Investor Relations section of our website at ir.clubcorp.com, under “Financials.”