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IPO Report: ClubCorp Holdings (MYCC)

By  +Follow September 19, 2013 2:00PM
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Founded in 1957, ClubCorp Holdings ($MYCC) is a membership-based leisure business and a leading owner-operator of private golf, country, business, sports and alumni clubs in North America.

Nine other IPOs are scheduled for this week, 12 for next week. The full IPO calendar can be found at IPOpremium

MYCC is based in Dased in Dallas, TX, and  scheduled a $306 million IPO with a market capitalization of $1.046 billion at a price range mid-point of $17, for Friday, September 20, 2013.

MYCC's S-1 was filed September 9, 2013.  Manager, Joint Managers: Goldman; Jefferies; Citigroup; BofA Merrill Lynch.  Co-Managers: Wells Fargo / Stephens

Summary
Founded in 1957, MYCC is a membership-based leisure business and a leading owner-operator of private golf, country, business, sports and alumni clubs in North America.

Valuation

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

Proforma for 6/12/13 24 wks

Cap (MM)

Sls

Erngs

BkVlue

TanBV

in IPO

ClubCorp Holdings

$1,046

1.5

153.8

4.2

-26.2

29%

             

Top line revenue is growing 4-5% per year. Operating income is in the 8% range, and the primary path to profitability seems to be to retire debt that has a 10% coupon.

Glossary

Conclusion
Internal growth appears limited, and MYCC has probably cherry-picked the best acquisition prospects in the US. The proposed market capitalization of $1 billion seems high based on the P/E multiple and the price-to-tangible book value, although the underlying real estate might provide an asset cushion. The rating is neutral to negative at the price range mid-point.

Business
Founded in 1957, MYCC are a membership-based leisure business and a leading owner-operator of private golf, country, business, sports and alumni clubs in North America.

The portfolio of 151 owned or operated clubs, with over 145,000 memberships, serves over 350,000 individual members.

MYCC is the largest owner of private golf and country clubs in the United States and owns the underlying real estate for 80 of 102 golf and country clubs (consisting of over 18 thousand acres of fee simple real estate).

Facilities are located in 23 states, the District of Columbia and two foreign countries.

Private equity owned
KSL owns 100% of MYCC pre-IPO
http://www.kslcapital.com/

Dividend policy
MYCCC expects to pay a quarterly cash dividend of $0.12 per share, or $0.48 per annum, starting in the first calendar quarter of 2014. At a price range mid-point of $17, $.48 per year is a 2.8% yield.

Use of Proceeds
MYCC intends on selling 10.9 million shares. A selling stockholder intends to sell 7.1 million shares.

MYCC expects to net $169 million from sale of 10.9 million shares. $145 million is allocated for debt repayment, $15 million is allocated to redemption premium, and $5 million is topay a one-time termination fee to an affiliate of KSL.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for mycc
Brad Thomas
2 Sep 14 08:07:52
Commented on: "ClubCorp Is A Consolidator That Could Add Distance To Your Game" http://t.co/ubPgn15aMg $MYCC
Brad Thomas
2 Sep 14 05:10:01
ClubCorp Is A Consolidator That Could Add Distance To Your Game - $MYCC -Seeking Alpha http://t.co/YwKyOtJuRT via @salphatrending
Bull and Bear Mash
2 Sep 14 04:57:59
Commented on: "ClubCorp Is A Consolidator That Could Add Distance To Your Game" http://t.co/udFK5PwI1Z $MYCC
Seeking Alpha
2 Sep 14 04:00:05
ClubCorp Is A Consolidator That Could Add Distance To Your Game http://t.co/sR6hWitpQ8 $MYCC
Financial News
28 Aug 14 13:35:03
$MYCC: ClubCorp Announces Agreement to Acquire Sequoia Golf Wednesday, August 13, 2014 http://t.co/haKAm2EVTi http://t.co/0V09DWRqyZ
Jason Shubnell
27 Aug 14 08:38:01
. @clubcorp CEO Eric Affeldt Thinks Golf Is 'Alive And Well' $MYCC http://t.co/wTdTMj4LPC via @benzinga
CalConfidence
27 Aug 14 06:08:01
ClubCorp CEO Eric Affeldt Thinks Golf Is 'Alive And Well' $MYCC http://t.co/ygNBkZUBTx via @benzinga
rich!
27 Aug 14 05:58:35
RT @Benzinga: #ClubCorp #CEO Eric Affeldt Thinks #Golf Is 'Alive And Well' $MYCC http://t.co/krdEE9E9HE @jrpro62
Evener Investment
27 Aug 14 05:58:09
RT @Benzinga: #ClubCorp #CEO Eric Affeldt Thinks #Golf Is 'Alive And Well' $MYCC http://t.co/krdEE9E9HE @jrpro62
Benzinga.com
27 Aug 14 05:54:35
#ClubCorp #CEO Eric Affeldt Thinks #Golf Is 'Alive And Well' $MYCC http://t.co/krdEE9E9HE @jrpro62
Market Updates
26 Aug 14 21:34:57
$MYCC: ClubCorp Holdings Rating Reiterated by Citigroup Inc. (MYCC) http://t.co/5At1A7X2Yv http://t.co/kWnUWxLCSs
JasonRaznick
26 Aug 14 21:04:03
Exclusive: ClubCorp CEO Eric Affeldt Thinks Golf Is 'Alive And Well' $MYCC http://t.co/5U3uQyCnFm
Benzinga.com
26 Aug 14 11:58:40
.@clubcorp CEO Eric Affeldt Thinks Golf Is 'Alive And Well' $MYCC http://t.co/oNzJc98e6K
Jim Probasco
26 Aug 14 10:49:30
ClubCorp CEO Eric Affeldt Thinks Golf Is 'Alive And Well' $MYCC http://t.co/gbbaopUxZZ via @benzinga
CMCMFIN
26 Aug 14 09:17:23
RT @lcdnews: ClubCorp plans $250M of new leveraged loans, amendment to back Sequoia purchase $ http://t.co/b0luH51iW1 $MYCC #golf #resort #…
Don Curren
26 Aug 14 07:10:59
RT @lcdnews: ClubCorp plans $250M of new leveraged loans, amendment to back Sequoia purchase $ http://t.co/b0luH51iW1 $MYCC #golf #resort #…
LCD News
26 Aug 14 07:10:26
ClubCorp plans $250M of new leveraged loans, amendment to back Sequoia purchase $ http://t.co/b0luH51iW1 $MYCC #golf #resort #leveragedloan
				
				
By  +Follow September 19, 2013 2:00PM
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