DALLAS - Golf ownership and management company ClubCorp, based here, recently finalized the refinancing of its outstanding bank debt to the tune of $618 million.
By completing three separate transactions around its mortgage portfolio, the company was able to retire the remaining outstanding balance of its credit facility. At the same time, ClubCorp was able to increase its liquidity and working capital.
As a result of the refinancing, ClubCorp has extended the majority of its debt maturities, which were scheduled to mature in 2004 and 2007, until 2010 through 2013.
Pacific Life, GMAC and Textron Financial were ClubCorp’s three lenders in this endeavor. Pacific Life provided $500 million, GMAC $61 million and Textron Financial $56 million.
The majority of the company’s new debt ($400 million) is locked in at a weighted average of 6.75 percent for terms of five to 10 years. The remainder carries floating rates.
According to Bob Dedman, chairman and CEO of ClubCorp, the refinancing will allow the company to shore up its balance sheet as it moves into new areas, including strictly management contracts (GCN, June 2003).
“We are fortunate to have been able to take advantage of a very favorable interest rate environment to lock in attractive long-term financing at historically low rates,” Dedman said. “Our focus in the short term remains on reducing the level of debt outstanding while increasing our cash flow to strengthen our balance sheet.”
Dedman said the company should see significant savings this year and in the long term, ClubCorp should capitalize as the economy improves.
“With the refinancing, combined with recent curtailments of capital spending for acquisitions and expansions, we should generate significant cash flow this year,” Dedman said. “The transaction gives us improved flexibility and reduced interest costs to help us achieve our goals.”
By completing three separate transactions around its mortgage portfolio, the company was able to retire the remaining outstanding balance of its credit facility. At the same time, ClubCorp was able to increase its liquidity and working capital.
As a result of the refinancing, ClubCorp has extended the majority of its debt maturities, which were scheduled to mature in 2004 and 2007, until 2010 through 2013.
Pacific Life, GMAC and Textron Financial were ClubCorp’s three lenders in this endeavor. Pacific Life provided $500 million, GMAC $61 million and Textron Financial $56 million.
The majority of the company’s new debt ($400 million) is locked in at a weighted average of 6.75 percent for terms of five to 10 years. The remainder carries floating rates.
According to Bob Dedman, chairman and CEO of ClubCorp, the refinancing will allow the company to shore up its balance sheet as it moves into new areas, including strictly management contracts (GCN, June 2003).
“We are fortunate to have been able to take advantage of a very favorable interest rate environment to lock in attractive long-term financing at historically low rates,” Dedman said. “Our focus in the short term remains on reducing the level of debt outstanding while increasing our cash flow to strengthen our balance sheet.”
Dedman said the company should see significant savings this year and in the long term, ClubCorp should capitalize as the economy improves.
“With the refinancing, combined with recent curtailments of capital spending for acquisitions and expansions, we should generate significant cash flow this year,” Dedman said. “The transaction gives us improved flexibility and reduced interest costs to help us achieve our goals.”
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