CARLSBAD, Calif., March 21,
2024 /PRNewswire/ -- Topgolf Callaway Brands Corp.
(NYSE: MODG) ("Topgolf Callaway Brands" or the "Company") today
announced the repricing of its term loan, thereby lowering its
future interest costs.
Summary of Transaction
- Successfully repriced the existing $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
10-basis point credit spread adjustment (CSA) for a total reduction
of 60 basis points
- Interest expense savings expected 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, Chief Financial Officer
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., JPMorgan Chase Bank, N.A., MUFG
Securities Americas Inc., and Truist Securities, Inc. acted as
Joint Lead Arrangers and Joint Bookrunners.
For additional information on the terms and conditions, please
see the Company's Form 8-K regarding the debt repricing, to be
filed with the Securities and Exchange Commission.
Forward-Looking Statements
Statements used in this press release that relate to future
plans, events, financial results, performance, prospects, or growth
opportunities, including statements relating to the Company's
expected interest expense savings, continued growth of the
business; future total Company and Topgolf free cash flows; the
Company's overall leverage, financial flexibility, liquidity and
ability to fund the continued growth of the business, and
statements of belief and any statement of assumptions underlying
any of the foregoing, are forward-looking statements as defined
under the Private Securities Litigation Reform Act of 1995. These
statements are based upon current information and expectations.
Accurately estimating the forward-looking statements is based upon
various risks and unknowns, including uncertainty regarding global
economic conditions, including relating to inflation, decreases in
consumer demand and spending, and any severe or prolonged economic
downturn; costs, expenses or difficulties related to the merger
with Topgolf, including the integration of the Topgolf business;
failure to realize the expected benefits and synergies of the
Topgolf merger in the expected timeframes or at all; the Company's
level of indebtedness; continued availability of credit facilities
and liquidity and ability to comply with applicable debt covenants;
effectiveness of capital allocation and cost/expense reduction
efforts; continued brand momentum and product success; growth in
the direct-to-consumer and e-commerce channels; ability to realize
the benefits of the continued investments in the Company's
business; consumer acceptance of and demand for the Company's and
its subsidiaries' products and services; any changes in U.S. trade,
tax or other policies, including restrictions on imports or an
increase in import tariffs; future retailer purchasing activity,
which can be significantly negatively affected by adverse industry
conditions and overall retail inventory levels; the level of
promotional activity in the marketplace; and future changes in
foreign currency exchange rates and the degree of effectiveness of
the Company's hedging programs. Actual results may differ
materially from those estimated or anticipated as a result of these
risks and unknowns or other risks and uncertainties, including the
effect of terrorist activity, armed conflict, natural disasters or
pandemic diseases; delays, difficulties or increased costs in the
supply of components or commodities needed to manufacture the
Company's products or in manufacturing the Company's products; and
a decrease in participation levels in golf generally. For
additional information concerning these and other risks and
uncertainties that could affect these statements and the Company's
business, see the Company's Annual Report on Form 10-K for the year
ended December 31, 2023 as well as
other risks and uncertainties detailed from time to time in the
Company's reports on Forms 10-Q and 8-K subsequently filed with the
Securities and Exchange Commission. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no
obligation to republish revised forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
About Topgolf Callaway Brands Corp.
Topgolf Callaway Brands Corp. (NYSE: MODG) is an unrivaled
tech-enabled Modern Golf and active lifestyle company delivering
leading golf equipment, apparel, and entertainment, with a
portfolio of global brands including Topgolf, Callaway Golf,
TravisMathew, Toptracer, Odyssey, OGIO, Jack Wolfskin, and World
Golf Tour ("WGT"). "Modern Golf" is the dynamic and inclusive
ecosystem that includes both on-course and off-course golf. For
more information, please visit
https://www.topgolfcallawaybrands.com.
Contact:
Katina
Metzidakis
invrelations@tcbrands.com
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SOURCE Topgolf Callaway Brands Corp.