#United States #Carlsbad #Callaway Golf #loan repayment #NYSE CALY

Callaway Golf Company Completes Full Repayment of Term Loan B

On June 1, 2026, the Callaway Golf Company, listed on NYSE under the symbol CALY, announced a significant milestone by repaying approximately $163 million remaining under its Term Loan B facility. This comes after an earlier voluntary repayment of $1 billion in January 2026, a strategic move aimed at rebalancing the company’s financial standings and capital structure.

The funding for this repayment was made possible through the cash reserves held by the company, which not only simplifies their capital architecture but also actively reduces future cash interest expenses. Following this repayment, Callaway's total gross debt stands at approximately $53 million, comprised of around $44 million under the Japan Asset-Based Lending (ABL) facility and about $9 million in equipment notes and finance leases. Moreover, the Company boasts over $150 million in unrestricted cash and cash equivalents at hand. This financial positioning improves Callaway’s ability to adapt to future market conditions and pursue strategic opportunities without the burden of excessive debt.

Brian Lynch, the Chief Financial Officer and Chief Legal Officer of Callaway, stated, "This final repayment marks an important milestone in the balance sheet actions we outlined earlier this year. With our term loan B now fully repaid, we are well positioned to continue executing our capital allocation priorities with a strong balance sheet." This indicates Callaway's commitment to maintaining not only a strong balance sheet but also focusing on their core business and investor returns.

The implications of this debt repayment align with the Company's previously established goals regarding capital allocation, which emphasize reinvestment in the business, sustaining a healthy balance sheet, and returning capital to shareholders. Looking ahead, Callaway expects to end the current fiscal year in a strong position, marking a net cash scenario without net leverage, a considerable improvement from previous fiscal standings.

About Callaway Golf Company

Callaway Golf Company is recognized as a leading entity in the premium golf equipment market, offering a diverse portfolio featuring brands like Callaway Golf, Odyssey, TravisMathew, and OGIO. Their commitment to innovation and craftsmanship positions them as trendsetters in the golf industry, as they design, manufacture, and sell high-performance golf clubs, balls, apparel, bags, and related accessories. Callaway prioritizes not just product performance but also customer experience, marking its unique position in the market.

Moving forward, stakeholders and investors are optimistic about the company's strategic decisions based on their enhanced financial stability. The focus on growth, operational efficiency, and effective capital management stands to benefit Callaway Golf Company as it continues to set benchmarks in the sports industry, especially amid evolving market demands.

As Callaway Golf navigates these changes, its aim is to bolster not only its market position but also foster a sense of loyalty and engagement with its consumer base. With a robust balance sheet and clear capital allocation priorities, Callaway Golf Company is set to soar in the upcoming fiscal periods, establishing a strong foundation for future ventures in an ever-competitive landscape.