Topgolf Callaway Brands Corp. today announced the repricing of its term loan, thereby lowering its future interest costs.

Summary of Transaction

• Successfully repriced the existing $1.24 billion Topgolf Callaway Brands first-lien term loan due 2030
• Lowered the Topgolf Callaway Brands 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 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.

For additional information on the terms and conditions, please see the Company's Form 8-K regarding the debt repricing, to be filed with the Securities and Exchange Commission.

 

Source: prnewswire.com

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