CARLSBAD, Calif., Oct. 15, 2015 /PRNewswire/ -- Callaway Golf
Company (NYSE:ELY) (the "Company") today announced that it has
given notice of its intention to redeem all of the outstanding
3.75% Convertible Senior Notes due 2019 (the "Senior Notes")
pursuant to the terms of the Indenture governing the terms of the
Senior Notes. The outstanding Senior Notes will be redeemed for
cash equal to 100% of the principal amount of the Senior Notes,
plus accrued and unpaid interest. The anticipated redemption date
is November 16, 2015 (the "Redemption
Date"). The holders of the Senior Notes may exercise their
conversion rights at any time prior to the close of business on the
business day immediately preceding the Redemption Date at a rate of
133.3333 shares of the Company's common stock per $1,000 in principal amount of Senior Notes.
The Company originally issued the Senior Notes in August 2012 in the aggregate principal amount of
$112,500,000. In August 2015, the Company consummated certain
exchange transactions pursuant to which the Company retired
$84,983,000 of the Senior Notes in
exchange for cash and shares of the Company's common stock.
As a result, there is $27,517,000 in
aggregate principal amount of Senior Notes currently
outstanding.
"We are pleased that we were able to consummate the exchange
transactions and announce the redemption of the remaining Senior
Notes," commented Robert K. Julian,
Senior Vice President and Chief Financial Officer. "In connection
with these exchange and redemption transactions, the Company
expects to incur in the second half of 2015 approximately
$2.4 million of additional expense
representing transaction costs as well as the acceleration of
certain unamortized expenses. A substantial majority of these
additional costs will be non-cash. More importantly, the
retirement of the Senior Notes will be accretive to earnings in
2016 and will increase cash flows by approximately $5.0 million per year. Following the
retirement of the Senior Notes, the Company will not have any
long-term debt. The retirement of the Senior Notes represents
another important milestone in our strategic plans."
Forward-Looking Statements: This press release contains
forward-looking statements as defined under the Private Securities
Litigation Reform Act of 1995. These statements include the
Company's intention to redeem the Senior Notes, the anticipated
impact of the exchange and redemption transactions on the Company's
financial statements and other statements regarding the Company's
"expectations," "beliefs," "hopes," "intentions," "strategies," or
the like. These statements are based upon current information and
expectations and involve unknown risks, uncertainties, assumptions
and other factors, many of which are out of the Company's control
and difficult to forecast, including changes in capital market
conditions or economic conditions, compliance with the terms of the
Company's credit facilities, or administrative difficulties in
effecting the redemption, any of which could cause actual results
to differ materially from the forward-looking statements. For
additional information concerning these and other risks and
uncertainties that could affect these statements and the Company's
business, see the Company's Annual Report on Form 10-K for the year
ended December 31, 2014, as well as
other risks and uncertainties detailed from time to time in the
Company's reports on Forms 10-K, 10-Q and 8-K subsequently filed
with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward looking statements,
which speak only as of the date hereof. The Company
undertakes no obligation to republish revised forward-looking
statements to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.
About Callaway Golf
Through an unwavering
commitment to innovation, Callaway Golf Company (NYSE:ELY) creates
products designed to make every golfer a better golfer. Callaway
Golf Company manufactures and sells golf clubs and golf balls, and
sells golf accessories, under the Callaway Golf® and Odyssey®
brands worldwide. For more information please visit
www.callawaygolf.com.
Contacts:
|
Robert
Julian
|
|
Patrick
Burke
|
|
(760)
931-1771
|
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SOURCE Callaway Golf Company