Like other U.S. companies in our sector and others, Wolverine Worldwide is resorting to a bond offering to help raise more cash as security against the impact of Covid-19. The company announced on May 6 that it is offering $300 million worth of senior notes with a yield of more than 6 percent due in 2025 to repay borrowings under its revolving credit facilities. The notes will yield interest of 6.375 percent. The announcement came after Standard & Poors downgraded Wolverine’s debt and unsecured notes because of the likely impact of Covid-19 on its results. On the other hand, Moody’s reaffirmed its corporate rating, indicating that the company has good liquidity and credit availability, and that its financial leverage could improve from 5 times at the end of this year to 3.6 times in 2021.
