Topgolf Callaway Brands repriced its existing $1.24 billion first-lien term loan due 2030, lowering the loan’s interest rate by 50 basis points to SOFR plus 300 and eliminating the 10-basis point credit spread adjustment for a total reduction of 60 basis points. The repricing is expected to yield interest expense savings 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,” Brian Lynch, CFO and chief legal officer at Topgolf Callaway Brands, said. “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, JPMorgan Chase, MUFG Securities Americas and Truist Securities acted as joint lead arrangers and joint bookrunners for the term loan.
