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Topgolf Callaway Brands Successfully Completes Debt Repricing

by | Mar 21, 2024 | BUSINESS

One day removed from denying any knowledge of a published report that it is for sale, Topgolf Callaway Brands Corp. (NYSE: MODG) today announced the repricing of its term loan, thereby lowering its future interest costs.

The company said it repriced the existing $1.24 billion first-lien term loan due 2030; lowered the first-lien term loan interest rate by 50 basis points, to SOFR +300; and eliminated the 10-basis point credit spread adjustment (CSA) for a total reduction of 60 basis points

Interest expense savings, the company said,  are expected to be greater than $7 million on an annualized basis.

“We are pleased to announce the successful completion of our debt repricing, which will lower our annual interest expense while continuing to provide the company with ample liquidity,” said Brian Lynch, Chief Financial Officer and Chief Legal Officer at Topgolf Callaway Brands. “This repricing is consistent with our focus on managing overall leverage while maintaining the financial flexibility and liquidity needed to fund the continued growth of our business, a business which delivered positive free cash flow at both the total Company and Topgolf in 2023 and is forecast to do so again in 2024.”

Bank of America, N.A., JPMorgan Chase Bank, N.A., MUFG Securities Americas Inc., and Truist Securities, Inc. acted as Joint Lead Arrangers and Joint Bookrunners.

Today‘s announcement (after Market close) likely has nothing to do with yesterday’s report in the South Korea paper, “The Chosun Daily,” three major shareholders could be looking to sell Topgolf Callaway Brands.

The company’s stock closed today at $15.58, down from yesterday’s close ($15.66). The report of potential sale could be nothing more than angry shareolders trying to set a fire under management to improve stock price.

topgolfcallawaybrands.com

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About the Author

<a href="https://golfonemedia.com/author/steve_pike/" target="_self">Steve Pike</a>

Steve Pike

Steve “Spike” Pike is a lifelong journalist whose career covers Major League Baseball, the NFL, and college basketball. For the past 26 years, Spike has been one of the more respected voices in the golf and travel industries, working for such publications as Golfweek, Golf World, and Golf Digest for The New York Times Magazine Group. In 1998, Spike helped launch the PGA.com website for the PGA of America. As a freelance travel and golf writer, Spike’s travels have taken him around the world. He has played golf from Pebble Beach to St. Andrews, walked the Great Wall of China, climbed an active volcano in the Canary Islands, been on safari in South Africa, and dived with sharks off Guadalupe, Baja California. Steve lives in Delray Beach, Fla, and posts his golf and travel content on his website at spikeongolfandtravel.com. He can be reached at spikee41@hotmail.com.