A new five-year, $175 million term loan and a five-year, $100 million revolving line of credit will be used to help the “global sports entertainment community” pursue plans to open more venues throughout the U.S.
Topgolf®, which currently operates 29 venues serving 13 million guests annually, has announced the closing of a five-year, $175 million term loan and a five-year, $100 million revolving line of credit. The deal signifies a $175 million increase to Topgolf’s previous arrangement, which the company says will allow for greater financial flexibility as it pursues plans to open more venues throughout the U.S.
“This credit facility supplies us with the capital we need to introduce the Topgolf concept to more cities and help grow the game of golf,” said Topgolf’s Chief Financial Officer, William Davenport. “We’re extremely pleased with the support shown by our banks, which signals their belief in our strategy and the strength of our company.”
The transaction follows Topgolf’s two acquisitions this year of World Golf Tour and Protracer, as well as its announcement of receiving a major investment from Providence Equity Partners. This summer, Topgolf opened its flagship location on the Las Vegas Strip, featuring four levels of entertainment with 108 hitting bays, two swimming pools, five bars, a concert venue, a Callaway fitting studio, a retail shop and more.
C&RB has reported on the opening of the Las Vegas location as well as other news about Topgolf throughout this year: http://clubandresortbusiness.com/?s=Topgolf
JPMorgan Chase Bank, N.A., RBC Capital Markets and SunTrust Robinson Humphrey, Inc. acted as Joint Lead Arrangers and Joint Book Runners for the latest loan and credit line. JPMorgan Chase Bank, N.A. is acting as Administrative Agent for the credit facilities, and RBC Capital Markets and SunTrust Bank acted as Co-Syndication Agents.