Wolverine World Wide, Inc. entered into a fourth amendment of its existing credit agreement to add near-term financial and operational flexibility.
The Amendment adjusts the maximum consolidated leverage ratio under the credit agreement from 4.5x EBITDA to 4.875x EBITDA for the remainder of fiscal 2023. Financial covenant thresholds will revert to pre-existing levels under the credit agreement in the first quarter of fiscal 2024.
JP Morgan Chase Bank, N.A. served as the administrative agent, and the Amendment received unanimous support from the company’s bank group.
“This Amendment demonstrates our ongoing commitment to proactively enhancing our balance sheet and financial flexibility,” said Mike Stornant, Wolverine Worldwide’s executive vice president and chief financial officer. “While we continue to expect benefits in the second half of the year from lower transitory supply chain costs, further savings from profit improvement initiatives, and ongoing reduction of inventories, we believe proactively adjusting our leverage ratio is appropriate as we navigate a challenging macroeconomic environment. We are pleased by the strong support and favorable pricing we received from our bank group on this amendment.”
Wolverine’s portfolio includes Merrell, Saucony, Sperry, Sweaty Betty, Hush Puppies, Wolverine, Chaco, Bates, HYTEST, and Stride Rite. Wolverine Worldwide is also the global footwear licensee of Cat and Harley-Davidson brands.
