Drive Shack Inc. Announces $26.5 Million Term Loan Facility
DALLAS--(BUSINESS WIRE)-- Drive Shack Inc. (OTCQX: DSHK) (the “Company”), a leading owner and operator of golf-related leisure and entertainment businesses, announced today that it has obtained a $26.5 million senior secured term loan facility to fund the construction of its Puttery venues currently in development.
Company subsidiaries within its entertainment golf segment made an initial borrowing of $16 million on March 3, and can borrow the remaining $10.5 million available under the Facility at any time up to September 1, 2023.
All net proceeds of the facility will be used to fund the development and construction of the Company’s previously announced Puttery venues that are in development.
The facility has a five-year term, and loans issued under the facility bear interest at an annual rate equal to SOFR plus 8.50%, subject to a 2.00% SOFR floor and 15 bps credit adjustment.
The facility will amortize on a quarterly basis at a rate of 5% per year beginning in 2024, and is subject to customary affirmative, negative and financial covenants, voluntary and mandatory prepayment provisions and events of default.
The facility is guaranteed by Company subsidiaries within, and is secured by all of the assets of, the Company’s entertainment golf segment, subject to certain customary and other exceptions included in the financing agreement for the facility.
The foregoing description is a summary only. The Company will make available a full description of the facility in its 2022 Annual Report on www.otcmarkets.com and at https://ir.driveshack.com/. Investors are encouraged to review the full description when available.
About Drive Shack Inc.
Drive Shack Inc. is a leading owner and operator of golf-related leisure and entertainment businesses focused on bringing people together through competitive socializing. Today, our portfolio consists of American Golf, Drive Shack and Puttery. Current financial disclosure for the Company is available on www.otcmarkets.com and at https://ir.driveshack.com/.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” including the Company’s expected use of proceeds of the facility to fund the development and construction of Puttery venues. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risk that our Puttery constructions will take longer than we expect or will not be achieved. Accordingly, readers should not place undue reliance on forward-looking statements as a prediction of actual results.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Company’s annual and quarterly reports historically filed with the SEC (prior to the date of this press release), and on otcmarkets.com, which could cause its actual results to differ materially from those contained in any forward-looking statement.
Interim Chief Financial Officer
Drive Shack Inc.
Source: Drive Shack Inc.
Released March 8, 2023