Callaway Golf Co. completed its private offering of $140 million in
preferred stock. The company privately placed 1.25 million shares of
7.5 percent series B convertible preferred stock as well as 150,000
additional shares of preferred stock to cover overallotments in full.

The shares have a liquidation preference of $100 per share. The company
will pay cumulative dividends on the preferred stock at a rate of 7.5
percent per year.

The company intends to use the net proceeds of about $134 million to pay down a portion of its revolving line of credit.