Callaway Golf Company fully repaid $163 million of its Term Loan B, after a $1 billion prepayment in January, using cash on hand to simplify its capital structure. It now has $53 million of gross debt and over $150 million of unrestricted cash, reducing future interest expense.
Callaway Golf Company repaid the remaining $163 million outstanding under its Term Loan B facility, following a voluntary prepayment of $1 billion in January 2026. The repayment was funded with cash on hand, marking the final step in simplifying its capital structure as outlined earlier this year.
After repayment, the company holds $53 million in remaining gross debt, consisting of $44 million under its Japan ABL facility and $9 million in equipment notes and finance leases. It also maintains over $150 million in unrestricted cash and cash equivalents.
By eliminating the Term Loan B balance, the company expects to significantly reduce future cash interest expenses. This action enhances financial flexibility and positions the company to allocate capital more efficiently.
The company continues to target a net cash to zero net leverage position by year end. This aligns with its capital allocation priorities of reinvesting in the business, maintaining a healthy balance sheet and returning capital to shareholders.
