Challenge
Founded in 1957, Dallas-based ClubCorp is The World Leader in Private Clubs™, owning or operating more than 150 golf and country clubs, business clubs, sports clubs and alumni clubs in 25 states, the District of Columbia and two foreign countries. The scope of its unparalleled portfolio is only exceeded by the quality of its facilities and services. Some distinguished names on ClubCorp’s property roster include Firestone Country Club, Mission Hills Country Club, Capital Club Beijing, Metropolitan Club Chicago and Aspen Glen Club. ClubCorp serves 350,000 members and employs over 14,000 people.
Though acquired by KSL Capital Partners in 2006 for $1.8 billion, ClubCorp had certain existing indebtedness maturing in 2012 that needed to be addressed while favorably positioning the company for future expansion.
Solution
Brownstein shepherded all real estate aspects of KSL’s 2006 acquisition of ClubCorp, and has provided ongoing representation to them ever since. This in-depth knowledge of the client, their objectives and real estate holdings, enabled the firm to be well ahead of the curve to assist ClubCorp with this complex refinancing and restructuring.
The resulting transaction totaled $725 million in financing from Citi through a unique combination of term and revolving loans and high yield notes. Brownstein handled all real estate issues of the transaction including the transfer of Barton Creek and Homestead Resorts to KSL Resort, with a new $94 million Deutsche Bank term loan on Barton Creek.
Overall, the client secured outstanding financing on excellent terms. The proceeds from the issuance of the notes, together with borrowings under the new credit facilities, were used by ClubCorp to retire the debt due to mature in 2012.
Additionally, Brownstein continues to provide ClubCorp support in a variety of matters as needed.
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