S&P: Wolverine World notes B+

Standard & Poor's said it assigned its B+ preliminary unsecured debt rating to Wolverine World Wide Inc.'s proposed $375 million senior unsecured notes due 2020.

At the same time, the agency said it assigned a preliminary 5 recovery rating, reflecting expectations of modest recovery for the lenders in case of a payment default.

S&P said it expects the company to use net proceeds from this debt issuance to partially finance the pending roughly $1.23 billion acquisition of the Performance and Lifestyle Group business of Collective Brands Inc. The transaction is expected to be completed in October.

The agency said its preliminary ratings on Wolverine reflect its view that the company's financial profile will be aggressive following completion of the acquisition. In addition, S&P said it sees the company's financial policy as moderate, given the pending debt-financed transaction.

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