Callaway Golf Company Announces Exchange Transactions In Connection With Convertible Preferred Stock

   Callaway Golf Company Announces Exchange Transactions In Connection With
                         Convertible Preferred Stock

PR Newswire

CARLSBAD, Calif., Aug. 15, 2013

CARLSBAD, Calif., Aug. 15, 2013 /PRNewswire/ --Callaway Golf Company (NYSE:
ELY) today announced that the Company has entered into separate,
privately-negotiated exchange agreements (the "Exchange Transactions")
pursuant to which it will issue 3,392,263 shares of the Company's common
stock, par value $0.01 per share (the "Common Stock"), in exchange for 233,843
shares of the Company's outstanding 7.50% Series B Cumulative Perpetual
Convertible Preferred Stock, par value $0.01 per share, which has a conversion
price of approximately $7.05 per share and a liquidation preference of $100
per share (the "Preferred Stock"). The Company will also pay to the
exchanging holders cash dividends through December 15, 2013 on their shares of
Preferred Stock surrendered in the Exchange Transactions. The Exchange
Transactions are expected to close on August 20, 2013. Upon the closing of
the Exchange Transactions, 183,796 shares of the Preferred Stock will remain

"Retiring the preferred stock is an important part of our turnaround plan and
one that provides significant benefits to the Company and its shareholders,"
commented Chip Brewer, President and Chief Executive Officer. "The exchange
transactions announced today are a good step in that direction. These
transactions not only will lower the Company's cost of capital but also will
be accretive to earnings on an annualized basis. We may redeem the balance of
the preferred stock at any time and look forward to retiring the balance at
the appropriate time, subject to market conditions, and thus completing this
phase of our turnaround plan."

This press release does not constitute an offer to sell or a solicitation of
an offer to buy any securities, nor shall there be any sale of securities in
any state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities laws
of any such state or jurisdiction. The Common Stock issuable pursuant to the
Exchange Transactions has not been and will not be registered under the
Securities Act of 1933, as amended, or the securities laws of any other
jurisdiction and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.

Forward-Looking Statements: This press release contains forward-looking
statements as defined under the Private Securities Litigation Reform Act of
1995. These statements include statements regarding the anticipated closing
date of the Exchange Transactions and the redemption or retirement of the
balance of the preferred stock. These statements are based upon current
information and expectations and involve known and unknown risks,
uncertainties, assumptions and other factors many of which are out of the
Company's control and difficult to forecast that may cause actual results to
differ materially from those that may be described or implied. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The Company undertakes no obligation
to republish revised forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

About Callaway Golf

Through an unwavering commitment to innovation, Callaway Golf Company
(NYSE:ELY) creates products designed to make every golfer a better golfer.
Callaway Golf Company manufactures and sells golf clubs and golf balls, and
sells golf accessories under the Callaway Golf® and Odyssey® brands worldwide.
For more information please visit www.callawaygolf.comor

Contacts: Brad Holiday
Patrick Burke
(760) 931-1771


SOURCE Callaway Golf

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