ClubCorp Holdings Goes Public


ClubCorp Holdings Inc., Dallas, recently became the third publicly traded company in the U.S. health club space, joining Life Time Fitness, Chanhassen, MN, and Town Sports International, New York.

ClubCorp, which owns more than 150 private golf and country clubs in North America, many of which include fitness centers, announced in September the closing of its previously announced initial public offering of 18 million shares of common stock at a price of $14 per share. ClubCorp is listed under the symbol MYCC on the New York Stock Exchange.

ClubCorp issued and sold 13.2 million shares of common stock in the offering, and a selling stockholder affiliated with KSL Capital Partners LLC, the Denver-based private equity firm that acquired ClubCorp in 2006, offered and sold 4.8 million shares. Bloomberg reported that KSL Capital Partners affiliates plan to keep a majority stake in the company and had planned to sell 7.1 million shares in the offering while ClubCorp had planned to sell 10.9 million shares and use the proceeds to reduce debt.

Goldman, Sachs and Co., Jefferies LLC, Citigroup Global Markets Inc., BofA Merrill Lynch and Deutsche Bank Securities Inc. acted as joint bookrunners in the offering, and Wells Fargo Securities LLC and Stephens Inc. acted as co-managers, according to a press release.

The health club industry had had three publicly traded companies until 2007 when Bally Total Fitness, Chicago, filed for bankruptcy and became private.

ClubCorp was No. 4 on Club Industry's Top 100 Clubs list this year with $754.9 million in 2012 revenue.

ClubCorp President and CEO Eric Affeldt served on the panel of the CEO Summit last month at the Club Industry Conference and Exposition in Chicago.

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