Moody's rates Callaway Golf loan Ba3

Moody's said it assigned a Ba3 corporate family rating and Ba3-PD probability of default rating to Callaway Golf Co.

Moody's also assigned a Ba3 rating to a proposed $480 million senior secured term loan B and an SGL-2 speculative grade liquidity rating. The outlook is stable.

“Proceeds from the term loan will be used to fund the acquisition of Jack Wolfskin by Callaway,” said Kevin Cassidy, Senior Credit Officer at Moody's, in a news release.

“Callaway's Ba3 CFR reflects its concentration in a niche, highly discretionary consumer product segment. Callaway's ratings are also constrained by the risks associated with its expansion into non-golf-related apparel products, in an industry with very different competitive dynamics than its traditional golf business,” Moody’s said.

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