Fairfax and CI sign deal for Golf Town as US corporate parent

TORONTO – An investor group led by Fairfax Financial Holdings Ltd. and CI Investments Inc. have signed a deal to buy Golf Town Canada Inc. as its U.S. parent Golfsmith International Holdings restructures its debt under court protection from creditors.Golfsmith says Fairfax (TSX:FFH) and CI have also agreed to support its recapitalization and restructuring plan for its U.S. business.Fairfax and CI hold more than 40 per cent of Goldsmith’s second lien secured notes due 2018.Financial terms of the Golf Town deal were not immediately available, but Goldsmith said it will use the proceeds from the sale to repay a substantial portion of its first lien credit facility.Golfsmith says it plans to cancel its existing secured notes and issue new second lien notes and shares in the restructured company to the holders of its existing secured notes.The new secured notes will have an extended maturity date and an option for the restructured Golfsmith to pay interest in kind.Ontario pension fund manager OMERS acquired Golf Town in 2007 and combined it with Golfsmith in 2012.The company has 109 stores in the United States under the Golfsmith banner and 55 stores in Canada under the Golf Town banner. by The Canadian Press Posted Sep 14, 2016 9:23 am MDT Last Updated Sep 14, 2016 at 10:00 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Fairfax and CI sign deal for Golf Town as U.S. corporate parent restructures

Leave a Reply

Your email address will not be published. Required fields are marked *