Moody's assigns Callaway loan B1

Moody's Investors Service said it rated Callaway Golf Co.’s planned seven-year $950 million term loan B1. Concurrently, the agency affirmed Callaway’s other B1 ratings. The company's speculative grade liquidity is unchanged at SGL-2.

Callaway plans to use the loan to simplify its capital structure by refinancing its term debt at Callaway and subsidiary Topgolf International, Inc. and adding about $166 million of cash to its balance sheet. The company also intends to secure a $500 million asset-based lending facility to replace the revolvers at Callaway and Topgolf.

The B1 rating on Callaway's term loan due in 2026 and the ratings of Topgolf are unaffected, Moody’s said. Upon closing of this transaction and repayment of the outstanding debt, the agency will withdraw the ratings of Topgolf and the term loans at Callaway and Topgolf that were repaid.

The outlook remains negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.