Ginn Clubs & Resorts is in the market for $675 million in loans to be used for working capital. Credit Suisse is leading the syndication of a five-year, $165 million synthetic revolver; a five-year, $385 million term loan "B" and a six-year, $125 million second-lien term loan. Pricing on the revolver and "B" loan is LIBOR plus 3% and pricing on the second-lien term loan is being talked in the LIBOR plus 6 1/2-7% range. A bank meeting was held last Wednesday.
Moody's Investors Service assigned a B1 rating to the revolver and term loan and a B2 rating to the second lien. This was the first time Moody's has rated the company. The ratings agency expects the development of five projects in Florida, North Carolina and the Grand Bahamas to begin generating positive free cash flow this year from lot sales to buyers in the company's private communities. Calls to a company spokesman were not returned.