Callaway Golf has entered a privately negotiated exchange agreement under which it will issue $63,227,000 in aggregate principal amount of new 3.75 percent convertible senior notes due in 2019, and 5,866,821 shares of the company's common stock, with a par value $0.01 per share, in exchange for 982,361 shares of the company's outstanding 7.50 percent series B cumulative perpetual convertible preferred stock, with a par value $0.01 per share, which has a conversion price of $7.05 per share and a liquidation preference of $100 per share. Following the exchange transactions, 417,639 shares of the preferred stock will remain outstanding. These refinancing transactions are consistent with the company's turnaround plan and add to the cost-reduction initiatives announced in July.

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