June 9, 2009 (FinancialWire) — Callaway Golf Co. (NYSE: ELY) said it plans to offer shares of series B cumulative perpetual convertible preferred stock with a liquidation preference of $100 per share, and an aggregate liquidation preference of $110 million, in a private offering.

The company plans to grant the initial purchaser of the preferred stock a 30-day option to purchase up to an additional $15 million of the preferred stock to cover over-allotments.

Callaway plans to use the net proceeds of the offering to pay down a portion of the company’s indebtedness outstanding under its existing revolving line of credit. In a statement, Callaway said the move should enable it to retain the credit facility’s “currently favorable terms” and avoid the need for an amendment of such terms.

Carlsbad, California-based Callaway Golf manufactures and sells golf clubs and golf balls, and sells golf accessories, under the Callaway Golf, Odyssey, Ben Hogan and Top-Flite brands.

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