National Golf Shares Fall on Dividend News
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National Golf Properties Inc.’s shares fell 17% after the largest U.S. golf course owner said it is suspending dividend payments.
The Santa Monica-based company’s shares fell $1.65 to close at $8.05 on the New York Stock Exchange. The shares are down 62% since August, when National Golf said the firm that leases most of its 137 courses, American Golf Corp., may be unable to pay its rent because of a drop in business.
National Golf had been paying a 46-cent-a-share quarterly dividend. The company said Friday that the dividend was cut to “increase financial flexibility.” Company officials didn’t return phone calls requesting comment.
The company also said it reached “forbearance agreements” with certain of its lenders regarding the default on a $300-million credit line. American Golf’s violation of a fixed-charge coverage ratio triggered the default last year.
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