ClubCorp Holdings which has acquired eight golf clubs so far in 2015 owned or operated 158 golf and country clubs as of September 8 Photo by Thinkstock

ClubCorp Holdings, which has acquired eight golf clubs so far in 2015, owned or operated 158 golf and country clubs as of September 8. (Photo by Thinkstock.)

ClubCorp Intends to Use Proceeds from $400 Million Senior Notes Offering for Debt, Acquisitions

ClubCorp Club Operations intends to use the net proceeds from the offering for general corporate purposes, including to repay indebtedness under its existing secured credit facilities and for acquisitions.

ClubCorp Club Operations Inc, Dallas, an indirect wholly owned subsidiary of ClubCorp Holdings Inc., Dallas, intends to offer $400 million in aggregate principal amount of senior notes due in 2023.

ClubCorp Club Operations intends to use the net proceeds from the offering for general corporate purposes, including for acquisitions and to repay indebtedness under its existing secured credit facilities, according to Tuesday's media release announcing the offering.

ClubCorp Holdings, which has acquired eight golf clubs so far in 2015, owned or operated 158 golf and country clubs as of September 8. Many of those clubs include a fitness center component. 

In March, ClubCorp acquired six golf clubs for $44 million from Stratford Golf Partners and Accord Golf Capital. One of those clubs, the Legacy Golf Club at Lakewood Ranch, Florida, was reportedly sold for $3.4 million on Nov. 4. The March acquisitions followed the purchase of 50 golf facilities from Atlanta-based Sequoia Golf in August 2014 for $265 million

In October, ClubCorp Holdings CEO Eric Affeldt told analysts the company is looking at other purchases but did not disclose further details. In response to an analyst's question about ClubCorp getting into businesses other than golf and country clubs, Affeldt responded that they have looked at other membership-based businesses and would not rule out that possibility in the future. Affeldt did not offer specifics on what type of membership-based businesses he has considered.

ClubCorp reported a record third quarter 2015 revenue increase of 24.9 percent ($50.9 million) to $255.4 million. Clubs opened or acquired in 2014 and 2015 contributed revenue growth of $44.6 million and adjusted EBITDA growth of $9.7 million, according to ClubCorp's third quarter financial disclosure.

ClubCorp Holdings has more than 300 private clubs and special offerings at more than 1,000 hotels, resorts and entertainment venues. ClubCorp Holdings ranked No. 5 on Club Industry's Top 100 Health Clubs list this year with 2014 revenue of $844.16 million. 

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