ClubCorp hopes to generate $300M in offering


ClubCorp Holdings has released details about its initial public offering, the headline being that the effort could bring it $300 million or more.

ClubCorp will offer 10.9 million shares, according to an SEC filing, and its owner, KSL Capital Partners, will offer 7.1 million shares. At $17, the midway point between the issue’s expected $16 to $18 price per share, a sellout would raise $306 million.

When all is said and done, KSL Capital will retain its majority stake ClubCorp, which the Dallas Morning News says owns and/or operates 152 golf, country and other clubs in North America and also owns the real estate at 81 of its golf and country clubs.

ClubCorp plans to use the money it raises to retire roughly $160 million in debt, according to a report by Law 360. In its 2012 fiscal year, the company posted a net loss of $27 million on revenues of $755 million. Had it not been required to cover $89 million in interest expenses, it would have shown a profit.

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