Moody’s eyes Topgolf for upgrade

Moody’s Investors Service said it placed Topgolf International, Inc.’s ratings on review for upgrade, including the Caa1 corporate family rating and the Caa1 first-lien credit facility ratings.

On Tuesday, Callaway Golf Co. announced it agreed to increase its equity ownership in Topgolf to 100%. If the acquisition is approved, Topgolf will become an unrestricted subsidiary of Callaway.

“Topgolf’s existing debt is expected to remain outstanding and not be guaranteed by Callaway. The review for upgrade will focus on the benefits from being 100% owned by Callaway, including the implicit support provided by the acquisition, Topgolf’s liquidity position, leverage level, and business plan going forward,” Moody’s said in a press release.

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