Wolverine Worldwide Temporarily Amends Certain Financial Covenants To Improve Liquidity & Financial Flexibility

Wolverine World Wide Inc WWW has entered into a fourth amendment of its existing Credit Agreement dated as of July 31, 2012.

The amendment will adjust the maximum consolidated leverage ratio under the Credit Agreement from 4.5x EBITDA to 4.875x EBITDA for the remainder of fiscal 2023.

The company expects the amendment to provide near-term financial and operational flexibility. Financial covenant thresholds will revert to pre-existing levels under the credit agreement in the first quarter of fiscal 2024.

"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," said Mike Stornant, Executive Vice President and CFO.

Price Action: WWW shares traded higher by 0.88% at $14.40 on the last check Friday.