Moody's gives B1 to Topgolf loan

Moody's Investors Service said it gave a B1 rating to Topgolf Callaway Brands Corp.'s new $1.1 billion seven-year senior secured term loan B and affirmed its B1 ratings. The company's speculative grade liquidity rating is unchanged at SGL-2.

“Topgolf Callaway plans to simplify its existing capital structure by refinancing and combining its term debt at Topgolf Callaway and Topgolf International, Inc. (TGI CFR B3, stable). TGI was acquired by the company in March 2021 in an all-stock transaction valued at $1.7 billion and the capital structures of these two companies have thus far remained separate,” Moody’s said in a press release. The remaining proceeds will be added to the balance sheet.

Topgolf Callaway also plans to boost its asset-based revolver limit to $525 million from $400 million. Borrowings under TGI’s $175 million revolver will be paid off with proceeds from the new term loan and then terminated.

“There is no impact on TGI's current ratings or stable outlook. Upon closing of this transaction and repayment of the existing debt, Moody's will withdraw all ratings at TGI and of the existing term loan at Topgolf Callaway,” the agency said.

The outlook is stable.

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