The Dallas-based owner and operator of private clubs plans to pay off $270 million of principal in senior notes, saving $14 million in net interest each year. The payment will be made May 11 with a $350 million lower-interest loan that is scheduled to mature in 2020, easing the company’s financial future and freeing up capital.
Dallas-based ClubCorp Holdings Inc. plans to pay off about $270 million of principal in senior notes, saving the company $14 million of net interest each year, the Dallas Business Journal reported.
The company plans to pay off a portion of its debt on May 11 with a $350 million lower-interest loan that is scheduled to mature on July 24, 2020, the Business Journal reported.
The deal eases ClubCorp’s financial future and frees up capital for the company, which has been buying additional club properties including Dallas-Fort Worth’s Prestonwood Country Club. ClubCorp plans to continue acquiring golf and country clubs as deals become available, the Business Journal reported.
“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 renovations and acquisitions,” CFO and Treasurer Curt McClellan said in a written statement.
The company also plans to repay its outstanding balance of $11.2 million on its revolving credit facility, the Business Journal reported.
After paying the premium on the senior loan balances, ClubCorp will have roughly $25 million that it plans to put toward general corporate uses, the Business Journal reported.