Topgolf Callaway Brands Corp. announced the repricing of its term loan, lowering its future interest costs. A transaction summary is as follows:
- The company repriced the $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 ten basis point credit spread adjustment (CSA) for a total reduction of 60 basis points.
- Topgolf Callaway Brands Corp. expects interest expense savings 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, CFO 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., JP Morgan Chase Bank, N.A., MUFG Securities Americas, Inc., and Truist Securities, Inc. acted as joint lead arrangers and joint bookrunners.
Image courtesy Topgolf Callaway/TravisMathew
