18 Aug Wolverine Worldwide Updates Buy Back Plans
Wolverine Worldwide Inc.’s board of directors approved a new, four-year share repurchase program, authorizing up to $300 million in share repurchases and replacing the remaining balance of the company’s 2014 Share Repurchase Program.
The owner of the Merrell, Sperry and Saucony footwear brands also announced plans to issue 10-year bonds with a face value of $250 million. Wolverine Worldwide (NYSE:WWW) intends to use the net proceeds from the senior notes, together with borrowings under its senior credit facility and cash on hand, to fund the redemption of its outstanding 6.125 percent Senior Notes due 2020, and pay related fees and expenses.
“Wolverine Worldwide has a long history of returning value to shareholders through share repurchases and consistent dividend payments. Today, the strategic priorities for the company remain unchanged, and our business model continues to work and generate significant cash,” said Blake W. Krueger, Wolverine’s Chairman, Chief Executive Officer and President. “The Wolverine team is steadfastly focused on driving the global growth of our brands and improving bottom-line performance. Today’s announcement is further evidence of our confidence in the business, our key initiatives and our ability to achieve maximum flexibility with regard to capital allocation.”
The company will repurchase shares as deemed appropriate, based on factors including price, market conditions, and any restrictions contained within the company’s credit agreements.
The company’s portfolio of brands includes: Merrell, Sperry, Hush Puppies, Saucony, Wolverine, Keds, Stride Rite, Sebago, Chaco, Bates, Hytest and Soft Style.