ClubCorp Holdings, Inc., which is the largest operator of private golf and country clubs in the United States, sold 18 million shares of common stock at $14 a share in its initial public offering Tuesday, June 25.
ClubCorp issued and sold 13.2 million shares of common stock in the offering, while a selling stockholder affiliated with KSL Capital Partners, LLC offered and sold 4,800,000 shares of common stock in the offering. The company’s shares were trading above $15 Thursday morning under the ticker symbol MYCC.
The offering raised proceeds to ClubCorp of approximately $168.8 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by ClubCorp. ClubCorp will not receive any of the proceeds from the sale of the shares sold by the selling stockholder. ClubCorp intends to use a portion of the net proceeds from the offering to redeem $145.25 million in aggregate principal amount of the 10% Senior Notes due 2018 issued by its subsidiary, ClubCorp Club Operations, Inc., at a redemption price of 110.0%, plus accrued and unpaid interest thereon.
In addition, ClubCorp intends to use a portion of the net proceeds from the offering and cash on hand to make a one-time payment of $5.0 million to an affiliate of KSL Capital Partners, LLC in connection with the termination of a management agreement.
Goldman, Sachs & Co., Jefferies LLC, Citigroup Global Markets Inc., BofA Merrill Lynch and Deutsche Bank Securities Inc. acted as joint bookrunners in the offering. Wells Fargo Securities, LLC and Stephens Inc. acted as co-managers in the offering.
The company owns 102 private golf clubs in 23 states and the District of Columbia and operates another 48 with a combined membership of 145,000. It also operates a variety of business, sports and alumni clubs with an additional 205,000 members. The company, which generated $754.9 million in revenue in the fiscal year end Dec. 25, 2012, does not break out revenues from its pro shops.
