Taylor Made Golf Co. Inc. has completed a $1.05 billion, seven-year covenant-lite term loan B at the tight end of talk in a J.P. Morgan-led deal, according to sources. Pricing was finalized at a spread of 325 basis points over the secured overnight financing rate, plus a credit spread adjustment, with a 0.5% floor and an original issue discount of 99.5. The loan broke for trading in a 99.625/99.875 market.
Among the documentation changes, the MFN protection was revised to 50 bps for life, from 75 bps with an 18-month sunset; the inside maturity basket was removed; and the company will now conduct quarterly lender calls with MD&A. Proceeds from the deal will be used to refinance debt put in place to support the $1.9 billion acquisition of the business by Centroid Investment Partners in August 2021, according to Moody's. Additional financing includes a $300 million asset-based revolver due 2027, with a springing fixed-charge coverage covenant.
Taylor Made is a global designer and manufacturer of high-performance golf clubs, balls, bags and accessories.
Terms:
| Borrower | Taylor Made Golf Co. Inc. (19th Holdings Golf LLC) |
| Issue | $1.05 billion term loan B |
| UoP | Refinancing |
| Spread | Sofr+CSA+325 |
| Sofr+CSA floor | 0.50% |
| Price | 99.5 |
| Tenor | 7-year |
| YTM | 3.89% |
| Four-year yield | 3.95% |
| Call protection | 101 soft call for 6 months |
| Corporate ratings | B/B1 |
| Facility ratings | B/B1 |
| Recovery ratings | 3 |
| Financial covenants | None |
| Arrangers | JPM |
| Admin agent | JPM |
| Px Talk | Sofr+CSA+325/0.5%/99-99.5 |
| Sponsor | Centroid Investment Partners |
| Notes | CSA: 10/15/25 bps for 1-month, 3-month, 6-month rates. One 25 bps margin step-down at 1x inside closing first-lien net leverage. IPO step-down removed. 50 bps MFN protection for life. |