Callaway Golf Company Announces Full Repayment of Term Loan B

Rhea-AI Summary

Callaway Golf (NYSE: CALY) fully repaid the remaining ~$163 million of its term loan B, after a prior $1 billion voluntary prepayment in January 2026. The repayment, funded with cash on hand, simplifies the capital structure and is expected to reduce future cash interest expense.

After repayment, Callaway Golf reports ~$53 million of gross debt, including ~$44 million under its Japan ABL facility and ~$9 million of equipment notes and finance leases, and over $150 million in unrestricted cash. The company continues to expect to end 2026 in a net cash to zero net leverage position.

Positive

• Final repayment of remaining ~$163 million term loan B debt
• Total $1.163 billion term loan B reduction in 2026, including January prepayment
• Gross debt reduced to approximately $53 million after transaction
• Unrestricted cash and cash equivalents remain over $150 million
• Repayment expected to reduce future cash interest expense
• Company targets net cash to zero net leverage by year-end 2026

Negative

• None.

News Market Reaction – CALY

-0.98%

-0.98% Session close to close

In the Jun 2 session, CALY declined 0.98%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement underscores Callaway’s continued focus on deleveraging and simplifying its capital...

Analysis

This announcement underscores Callaway’s continued focus on deleveraging and simplifying its capital structure. Fully repaying the remaining $163 million term loan B after a prior $1 billion prepayment leaves only $53 million of gross debt and over $150 million of unrestricted cash. Combined with recent results that returned the company to a net cash position, this move extends a clear financial discipline theme. Investors may watch future debt levels and capital returns relative to these stated priorities.

Key Figures

Term loan B repayment: $163 million Prior prepayment: $1 billion Remaining gross debt: $53 million +3 more

6 metrics

Term loan B repayment $163 million Remaining balance of term loan B repaid in full

Prior prepayment $1 billion Voluntary prepayment of term loan B in January 2026

Remaining gross debt $53 million Gross debt immediately after term loan B repayment

Japan ABL facility $44 million Outstanding under Japan ABL facility post-repayment

Equipment notes & leases $9 million Equipment notes and finance leases outstanding

Unrestricted cash Over $150 million Unrestricted cash and cash equivalents after repayment

Historical Context

5 past events · Latest: May 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 07	Q1 2026 earnings	Positive	+18.6%	Strong Q1 growth, higher Adjusted EBITDA, raised 2026 outlook and net cash return.
Apr 30	Earnings date notice	Neutral	-0.9%	Announcement of Q1 2026 release date and conference call logistics.
Feb 12	FY 2025 earnings	Positive	-15.1%	Full-year $2.06B sales, portfolio refocus, net cash, and large debt repayment.
Feb 05	Earnings date notice	Neutral	+3.2%	Scheduling Q4/FY 2025 results call and listing upcoming investor conferences.
Jan 16	Product launch	Positive	-70.0%	Launch of Quantum line of drivers, fairways, irons, and hybrids with new tech.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive fundamental news has produced mixed reactions, with some strong rallies but also sharp selloffs, while neutral timing updates tend to see modest, directionally aligned moves.

Recent Company History

Recent news shows Callaway transitioning to a leaner, golf-focused business with active balance sheet management. Q4 2025 and full-year results highlighted $2.06B net sales, $222.4M Adjusted EBITDA, a move to net cash, and plans to retire $258M of convertible notes plus a $200M buyback. Q1 2026 delivered net sales of $687.5M and Adjusted EBITDA of $163.7M, again returning to net cash and prompting guidance raises. The current term loan B repayment continues this deleveraging trajectory.

Key Terms

term loan b, abl facility, finance leases, net leverage

4 terms

term loan b financial

"repayed in full the remaining approximately $163 million outstanding under its term loan B facility"

A Term Loan B (TLB) is a large, syndicated loan made to a company that is typically sold to institutional investors rather than held by banks; think of it as a long-term mortgage from a group of investors with higher interest and smaller early payments. It matters to investors because it changes a company’s debt cost, repayment schedule and credit risk—factors that affect profit, cash flow and the market value of both the company’s equity and its traded debt.

abl facility financial

"remaining gross debt, consisting of approximately $44 million under its Japan ABL facility"

An ABL facility is a line of credit where a company borrows money using its current assets—like accounts receivable, inventory or equipment—as the primary form of security. It works like a home equity line but tied to business assets: the more valuable and easily sold those assets are, the more the company can borrow. Investors watch ABLs because they affect a company’s liquidity, borrowing capacity and financial flexibility, and because repayments depend on the condition and turnover of the underlying assets.

finance leases financial

"approximately $9 million of equipment notes and finance leases"

A finance lease is a long-term rental arrangement where a company takes on most of the risks and rewards of owning an asset—like equipment or property—while making scheduled payments instead of a single purchase. Think of it like buying something on an installment plan: the item appears on the company’s books as an asset and a matching obligation, which affects reported debt, profits and cash flow and therefore can change how investors view the company’s financial strength and valuation.

net leverage financial

"expect to end the year in a net cash to zero net leverage position"

Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CARLSBAD, Calif., June 1, 2026 /PRNewswire/ -- Callaway Golf Company (NYSE: CALY)(the "Company") today announced that it has repaid in full the remaining approximately $163 million outstanding under its term loan B facility, following its voluntary prepayment of $1 billion of term loan B debt in January 2026. The repayment was funded with cash on hand, further simplifying the Company's capital structure. Immediately following the repayment, the Company had approximately $53 million of remaining gross debt, consisting of approximately $44 million under its Japan ABL facility and approximately $9 million of equipment notes and finance leases, as well as unrestricted cash and cash equivalents of over $150 million. The repayment will reduce future cash interest expense and enhance financial flexibility.

"This final repayment marks an important milestone in the balance sheet actions we outlined earlier this year," said Brian Lynch, Chief Financial Officer and Chief Legal Officer. "With our term loan B now fully repaid, we are well positioned to continue executing our capital allocation priorities with a strong balance sheet."

This repayment is consistent with the Company's previously communicated capital allocation priorities of reinvesting in the business, maintaining a healthy balance sheet and returning capital to shareholders. The Company continues to expect to end the year in a net cash to zero net leverage position.

About Callaway Golf Company
Callaway Golf Company (NYSE: CALY), is a premium golf equipment, gear and apparel company with a portfolio of global brands, including Callaway Golf, Odyssey, TravisMathew, and OGIO. Through an unwavering commitment to innovation and premium craftsmanship, Callaway designs, manufactures, and sells high-performance golf clubs, golf balls, apparel, bags, and other accessories—setting the standard for performance in the game of golf. For more information, please visit https://ir.callawaygolf.com.

Forward-Looking Statements

Statements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's net leverage and cash balances at the end of the year, future cash interest expense, capital allocation priorities and positioning to return capital to shareholders, health of the Company's balance sheet and financial flexibility, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "estimate," "could," "would," "should," "intend," "may," "plan," "seek," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns. Actual results may differ materially from those estimated or anticipated as a result of the risks and unknowns identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 or other risks and uncertainties. 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.

Investor Contact
Patrick Burke
invrelations@callawaygolf.com

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SOURCE Callaway Golf Company

FAQ

What did Callaway Golf (CALY) announce about its term loan B on June 1, 2026?

Callaway Golf announced it fully repaid the remaining approximately $163 million outstanding under its term loan B. According to Callaway Golf, this follows a voluntary $1 billion prepayment in January 2026 and further simplifies the company’s capital structure while reducing future cash interest expense.

How did Callaway Golf fund the full repayment of its term loan B debt?

Callaway Golf funded the full repayment of its remaining term loan B debt using cash on hand. According to Callaway Golf, the company still holds over $150 million in unrestricted cash and cash equivalents after the transaction, supporting ongoing capital allocation priorities and financial flexibility.

What is Callaway Golf’s remaining debt level after repaying its term loan B?

After repaying its term loan B, Callaway Golf reports approximately $53 million of gross debt outstanding. According to Callaway Golf, this includes about $44 million under its Japan ABL facility and around $9 million of equipment notes and finance leases, significantly reducing its overall leverage profile.

How will the term loan B repayment affect Callaway Golf’s interest expense and balance sheet?

The full repayment of term loan B is expected to lower Callaway Golf’s future cash interest expense. According to Callaway Golf, this move advances earlier balance sheet plans and supports a strong capital structure, aligning with priorities to maintain a healthy balance sheet and return capital to shareholders.

What is Callaway Golf’s leverage outlook after the June 2026 debt repayment?

Callaway Golf continues to expect to end the year in a net cash to zero net leverage position. According to Callaway Golf, the term loan B repayment, combined with remaining low gross debt and ample cash, supports this leverage outlook and ongoing capital allocation strategy.

How does the term loan B repayment align with Callaway Golf’s capital allocation priorities?

The repayment is described as consistent with Callaway Golf’s capital allocation priorities. According to Callaway Golf, these priorities include reinvesting in the business, maintaining a healthy balance sheet, and returning capital to shareholders, supported by reduced debt and improved financial flexibility after the transaction.