Drive Shack, Inc. announced today that it had obtained a $26.5 million senior secured term loan facility to fund the construction of its Puttery venues currently in development.
Company subsidiaries within its entertainment golf segment made an initial borrowing of $16 million on March 3 and can borrow the remaining $10.5 million available under the Facility at any time up to September 1, 2023. All net proceeds of the Facility will fund the development and construction of its previously announced Puttery venues.
The Facility has a five-year term, and loans issued under the Facility bear interest at an annual rate equal to SOFR plus 8.50 percent, subject to a 2.00 percent SOFR floor and 15 bps credit adjustment. The Facility will amortize quarterly at a rate of 5 percent per year beginning in 2024 and is subject to customary affirmative, negative and financial covenants, voluntary and mandatory prepayment provisions, and events of default.
The Facility is guaranteed by company subsidiaries within and secured by all of the assets of the company’s entertainment golf segment, subject to certain customary and other exceptions included in the financing agreement for the Facility.
Drive Shack, Inc. owns and operates golf-related leisure and entertainment businesses, and its portfolio consists of American Golf, Drive Shack and Puttery.