Wolverine World Wide borrows $171 million of incremental term loans

By Sarah Lizee

Olympia, Wash., May 6 – Wolverine World Wide, Inc. amended its senior credit facility with JPMorgan Chase Bank, NA as administrative agent and borrowed $171 million of incremental term loans on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The incremental term loans will mature on May 4, 2021 and bear interest at a rate of Libor plus 225 basis points.

The amendment provided for, among other things, a condition precedent to subsequent borrowings under the company’s revolver within the amended senior credit facility that, after giving effect to each borrowing, the aggregate amount of unrestricted cash and cash equivalents of the company and its restricted subsidiaries does not exceed $500 million, other than to the extent any excess amount is required to effect acquisitions or other investments within 10 business days after the borrowing.

The amendment also includes adjustments to the pricing grid applicable to loans under the revolver and the existing term loan A facility to Libor plus 112.5 bps t to 200 bps, based on the consolidated leverage ratio, and a 0.75% Libor floor applicable to the incremental term loans, the revolver and the existing term loan A facility.

There is a commitment fee that ranges from 15 bps to 30 bps, also based on leverage.

The company used $100 million of the net proceeds from the incremental term loans to repay borrowings under the revolver, and the company retained the remaining $69 million of net proceeds of the incremental term loan, after paying an estimated $2 million in related fees and expenses, as cash on hand.

As of March 28, after giving effect to the incremental term loans, repayment of $2.5 million of borrowings under the existing term loan A facility on March 30 using cash on hand and a proposed issuance of new notes, the company would have had $539.1 million in cash and cash equivalents and $399.3 million in commitments available to be borrowed under the revolver.

Based in Rockford, Mich., Wolverine markets branded footwear and apparel.

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