Wolverine World Wide Inc. provided an update on actions it has taken to increase the liquidity and flexibility of its capital structure, primarily through the sale of $550 million of 4.000 percent Senior Notes due 2029.
The notes issue closed on Thursday. The company used the net proceeds from the sale of the notes, together with borrowings under its amended senior credit facility, to redeem all of its outstanding 5.000 percent senior notes due 2026 and 6.375 percent senior notes due 2025 and to pay all related fees and expenses.
“The company’s consistently strong cash flow over the last several years has resulted in a very healthy balance sheet,” said Mike Stornant, senior vice president and chief financial officer. “This performance, coupled with our positive outlook for the future, has allowed us to access the high-yield credit market at an opportune time and achieve a very favorable outcome. The recent bond refinancing actions will deliver annual interest expense savings of approximately $9.5 million that will benefit us immediately. The new notes also provide a longer tenor. We are well-positioned to continue to invest in driving profitable growth, especially for our fast-growing performance brands, led by Merrell, Saucony, and Sweaty Betty.”
Photo courtesy WWW/Sweaty Betty
