Wolverine closes $900 million of term loans, $200 million revolver

By Angela McDaniels

Tacoma, Wash., Oct. 9 - Wolverine World Wide Inc. closed a $1.1 billion senior secured credit facility on Tuesday. The facility consists of a $550 million term loan A, a $350 million term loan B and an undrawn $200 million revolving credit facility, according to a company news release.

The company entered into the facility in connection with its $1.24 billion acquisition of Collective Brands, Inc.'s performance and lifestyle group.

In addition to the credit facility, the company priced $375 million of eight-year senior notes at par to yield 6 1/8%.

"Taken as a whole, our financing package, before the impact of interest rate swaps, has a weighted average cost of approximately 4% per year," Wolverine senior vice president and chief financial officer Don Grimes said in the release.

The credit facility has a $200 million accordion feature, according to an 8-K filed with the Securities and Exchange Commission on Aug. 1.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead arrangers and bookrunners. JPMorgan Chase Bank, NA is the administrative agent. Wells Fargo Bank, NA is the syndication agent. Fifth Third Bank and PNC Bank, NA are the documentation agents.

Term loans

The term loan A has a term of five years, and the term loan B has a term of seven years.

The initial interest rate is Libor plus 225 basis points for the term loan A and Libor plus 300 bps for the term loan B. The term loan B has a 1% Libor floor.

On Friday, the company firmed the offer price on the term loan B at par, the low end of the 99¾ to par guidance, according to a market source.

The term loan B has 101 soft call protection for one year. The term loan A is callable at any time without penalty or premium.

The proceeds of the term loan B were expected to be used to refinance an existing term loan B that is priced at Libor plus 375 bps with a 1% Libor floor.

The term loan B was repriced from Libor plus 375 bps. An original issue discount of 99 and a 101 soft call premium are being paid to originally allocated lenders on the closing date, according to the market source.

Revolver

The revolver has a term of five years.

The initial interest rate is Libor plus 225 bps

The revolver includes a $100 million foreign currency subfacility, a $35 million swingline subfacility and a $50 million letter-of-credit subfacility.

Wolverine is a Rockford, Mich.-based marketer of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel.

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