The deal, a fourth amendment to its existing credit agreement, will give the Merrell and Saucony parent more near-term financial and operational flexibility for the remainder of its fiscal year as it continues implementing its turnaround plan. Wolverine’s maximum consolidated ratio under the new amendment moves to 4.875x Ebitda from 4.5x Ebitda for the remainder of FY23. In Q1/FY24, the credit facility’s financial covenant thresholds will return to prior levels.
The group expects to see H2 benefits from lower supply chain costs, savings from profit improvement initiatives, and further reductions in inventory. Wolverine, which has committed to using generated cash to lower debt and leverage, is currently shopping its leather tannery business.
