S&P gives Topgolf loan B+

S&P said it gave B+ issue and 3 recovery ratings to Topgolf Callaway Brands Corp.’s planned $1.1 billion senior secured first-lien term loan due 2030. The agency also affirmed Topgolf’s B+ issuer rating.

Topgolf plans to use the loan to refinance debt.

“This includes more than $620 million of parent-level term loan and asset-based lending (ABL) revolver borrowings and $447 million ring-fenced debt at the Topgolf International operating subsidiary. The company is also expected to be the borrower under an upsized $525 million ABL facility. The transaction would consolidate debt, with the parent Topgolf Callaway Brands Inc. being the borrower under both the proposed term loan and ABL facilities. The proposed transaction will increase gross funded debt by rolling over nearly $250 million in revolver borrowings into long-term funding,” the agency said in a press release.

The outlook is stable.

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