Topgolf lifts term loan B to $1.25 billion, firms OID at 99

By Sara Rosenberg

New York, March 9 – Topgolf Callaway Brands Corp. upsized its seven-year covenant-lite term loan B (B1/B+) to $1.25 billion from $1.1 billion and finalized the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source.

Also, while pricing on the term loan remained at SOFR+10 basis points CSA plus 350 bps with a 0% floor, a 25 bps step-down was added upon corporate family ratings being upgraded to Ba3/BB-, the source said.

Current corporate family ratings are B1/B+ with a stable outlook.

The term loan still has 101 soft call protection for six months.

BofA Securities Inc., JPMorgan Chase Bank, MUFG and Truist are the arrangers on the deal.

Commitments were scheduled to be due at 2 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance an existing $432 million Topgolf Callaway Brands level and $337 million Topgolf subsidiary level term loan B borrowings, to repay $136 million of borrowings under an existing ABL revolving credit facility, to repay $110 million of borrowings under an existing Topgolf revolver, and to add cash to the balance sheet for general corporate purposes. The funds from the upsizing will be used for general corporate purposes.

The company is also getting a new $525 million five-year ABL facility to refinance and upsize its existing ABL revolver.

Topgolf is a Carlsbad, Calif.-based tech enabled modern golf and active lifestyle company.

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