S&P rates Wolverine facility BBB-

S&P said it assigned BBB- issue-level and 1 recovery ratings to Wolverine World Wide Inc.'s refinanced senior secured credit facility, which comprises a $1 billion revolver and a $200 million term loan due 2026. The 1 recovery rating indicates an expectation for very high recovery (90%-100%; rounded estimate: 95%) in default.

Concurrently, the agency said it trimmed the company's $550 million of senior unsecured notes due 2029 to BB- from BB and revised the recovery rating to 5 from 4. The 5 recovery rating indicates an expectation for modest recovery (10%-30%; rounded estimate: 15%) in default.

“We revised our recovery rating on the unsecured notes to reflect our lower recovery expectations for the unsecured lenders because of the increase in WWW's secured debt following the $200 million upsizing of its revolver,” S&P said in a press release.

WWW used the proceeds from the refinancing to pay off its $200 million term loan due 2023. WWW had an outstanding balance of about $310 million under the refinanced revolver at the time of the close.

“We consider this refinancing to be leverage natural and have withdrawn our issue-level and recovery ratings on the repaid credit facility,” the agency said.

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