CARLSBAD, Calif. (AP) -- Callaway Golf Co., which makes and sells golf clubs and other golf accessories, said Wednesday that it boosted a planned private offering of preferred stock by $15 million to $125 million.

The preferred stock offering, which was announced Monday, gives initial buyers a 30-day option to purchase up to an additional $15 million in preferred shares to cover any overallotments.

Callaway anticipates proceeds of about $119 million, excluding any exercise of the overallotment option. The company plans to use the proceeds to pay off some of its revolving credit line, which it expects will help keep the facility's current terms and avoid amendments to the agreement.

While the offering is a way for Callaway to try to raise some funds, the company has also looked to cut costs and announced in April that it eliminated 10 percent of its worldwide positions to help mitigate the impact of the economic downturn and stronger dollar.

The preferred stock offering is set to close on Monday.

The company has struggled during the recession as retailers stock fewer of its products due to curtailed consumer spending.

Callaway Golf's stock gained 18 cents, or 3 percent, to $6.10 in afternoon trading. The shares have traded in a 52-week range of $5.69 to $15.45.

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