Callaway Golf Co. reported recently that it struck private deals to issue 3.39 million shares of common stock in exchange for 233,843 shares of its outstanding 7.50 percent Series B Cumulative Perpetual Convertible Preferred Stock.
The company said the preferred stock has a conversion price of approximately $7.05 per share and a liquidation preference of $100 per share.
Callaway promised to pay cash dividends, through Dec. 15, to the people and institutions exchanging their preferred stock.
Shares of Callaway Golf common stock trade on the New York Stock Exchange as ELY. They closed Aug. 16 at $6.98.
“Retiring the preferred stock is an important part of our turnaround plan and one that provides significant benefits to the company and its shareholders,” said Callaway CEO Chip Brewer in a prepared statement.
Transactions are expected to close on Aug. 20. Upon closing, Callaway said that 183,796 shares of preferred stock will remain outstanding.
Carlsbad-based Callaway is part of a cluster of North County golf and sporting goods manufacturers.
— SDBJ Staff Report