Callaway Golf Company has announced the pricing of its offering of US$225 million aggregate principal amount of 2.75% convertible senior notes due 2026 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offering size was increased from the previously announced offering size of US$200 million aggregate principal amount of notes. The issuance and sale of the notes is scheduled to settle on May 4, 2020, subject to customary closing conditions. Callaway also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional US$33.75 million principal amount of notes.
Latham & Watkins LLP represented Callaway Golf Company in the offering with a corporate team led by San Diego partner Craig Garner and New York partner Greg Rodgers, with counsel Kevin Reyes and associates Andrew Blumenthal, Michael Johnson, and Regan Devers. Advice was also provided on derivatives matters by New York partner Catherine Lee, with associate Jack Neff; and on tax matters by New York partners Elena Romanova and Bora Bozkurt, with associate Ron Moore.