Drive Shack Inc. (NYSE:DS) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01.
Completion of Acquisition or Disposition of Assets.
On December 21, 2018, Drive Shack Inc. (the “Company”) consummated the sale of 10 golf courses, consisting of Canyon Oaks Country Club in Chico, CA, El Camino Country Club in Oceanside, CA, Monterey Country Club in Palm Desert, CA, Oakhurst Country Club in Clayton, CA, Oregon Golf Club in West Linn, OR, Palm Valley Country Club in Palm Desert, CA, Plantation Country Club in Garden City, ID, Seascape Golf Club in Aptos, CA, Sunset Hills Country Club in Thousand Oaks, CA, and Wood Ranch Golf Club in Simi Valley, CA.
The aggregate gross cash proceeds from these 10 sales and the sale of The Trophy Club of Apalachee in Dacula, GA, which the Company completed on December 19, 2018, equaled approximately $82.5 million, prior to taking into account transaction fees and certain adjustments to the contract sale price based on course assets and liabilities at the time of sale. The Company applied the aggregate net proceeds of the course sales, plus additional cash on hand, to prepay outstanding third-party financing under credit facilities established in June 2016 on 22 traditional owned golf properties (including each of those referred to in this Current Report on Form 8-K) in an aggregate principal amount equal to $102 million. Concurrently with this prepayment, the Company terminated these credit facilities.
The buyers of the golf courses consisted of various individuals and privately-held entities. None of the buyers had any material relationship with the Company or any of its subsidiaries or affiliates or any director or officer of the registrant, or any associate of any director or officer of the Company.
About Drive Shack Inc. (NYSE:DS)
Drive Shack Inc., formerly Newcastle Investment Corp., is a leisure company. The Company previously operated as a real estate investment trust (REIT). The Company is an owner and operator of golf-related leisure and entertainment businesses. The Company’s portfolio consists of Drive Shack, which is engaged in developing nationwide network of golf entertainment venues; American Golf Corporation, which is a golf course company, and real estate-related assets. American Golf Corporation operates approximately 90 private, resort and public golf courses throughout the United States. It has a range of public and private golf courses in California, New York, and Georgia. It operates multiple facilities that provide golf, tennis, swimming and spa facilities, among others. Its online Pro Shop offers a range of golf gifts, such as personalized golf balls, golf luggage and accessories. Its public golf courses equipped with practice areas, golf shops, driving ranges, and food and beverage options.
