Callaway Golf Completes $140 Million Offering

CARLSBAD, Calif. (AP) — Callaway Golf Co. said Monday it completed its private offering of $140 million in preferred stock.

The company privately placed 1.25 million shares of 7.5 percent series B convertible preferred stock as well as 150,000 additional shares of preferred stock to cover overallotments in full.

The shares have a liquidation preference of $100 per share. The company will pay cumulative dividends on the preferred stock at a rate of 7.5 percent per year.

The company intends to use the net proceeds of about $134 million to pay down a portion of its revolving line of credit.

Shares fell 22 cents, or 3.7 percent, to close earlier at $5.78.