Callaway Investment Thesis and Business Transformation Overview
NET DEBT CALCULATION
($ in millions)
1.
2.
Term Loans
Convertible Notes
ABLS
Equipment Notes
Total Callaway Debt
Revolving Credit Facility
Term Loan
Capital Leases
Deemed Landlord Financing¹
Venue Finance Lease Obligations¹
Mortgage Loans
Total Topgolf Debt
Total Company Debt
Unrestricted Cash
Total Net Debt
Total Net Debt (excluding Convertible Note)²
2021
$
$
$
December 31,
2020
450
$
460
259
259
9
22
31
32
749
773
0
0
340
0
2
0
461
0
132
0
46
0
981
1,730
(352)
1,378
$
1,119
$
0
773
(366)
407
148
In Q4 2021, the Company remeasured Topgolf's leases in accordance with relevant purchase accounting guidance as well as reclassified certain ground leases to DLF. Across all of our lease-related liabilities (operating, DLF, venue finance) over $350M of the
Q4 2021 increase was related to purchase accounting valuations.
In accordance with FASB, beginning on January 1, 2022, the Company's fully diluted share count assumes the conversion of the $259 convertible note, increasing the share count to approximately 204 million shares. If using this fully diluted share count to
calculate the Company's enterprise value, the corresponding total net debt figure should also exclude the convertible note.
Callaway
28View entire presentation