Callaway Golf amends asset-based revolver for $230 million via Merrill

By Susanna Moon

Chicago, Dec. 29 - Callaway Golf Co. obtained a senior secured asset-based revolving credit facility of up to $230 million, comprising a $158,333,333 million U.S. facility, a $31,666,667 million Canadian facility and a $40 million U.K. facility, according to an 8-K filing with the Securities and Exchange Commission.

Initially interest on the loans will be Libor plus 250 basis points, with a spread over Libor of 225 bps to 275 bps, based on availability.

Pricing will be reduced if the company increases its EBITDA for any trailing 12-month period ending after closing. If EBITDA is between $25 million to $50 million, pricing will be Libor plus 200 bps to 250 bps. If EBITDA is at least $50 million, the margin will be 175 bps to 225 bps.

Of the U.S. facility $20 million is available for letters of credit, of the Canadian facility $5 million is slated for letters of credit and of the U.K. facility $2 million may be used for letters of credit.

The company amended and restated its asset-based credit facility on Dec. 22 with Bank of America, NA as administrative agent, UBS Securities LLC as syndication agent, Wells Fargo Capital Finance, LLC as documentation agent and Bank of America Merrill Lynch as bookrunner.

The company originally closed the credit agreement on June 30 and increased the facility size on July 22.

Callaway designs, manufactures and sells golf clubs and other golf equipment, and is based in Carlsbad, Calif.

© 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.