Wolverine Prices its Senior Notes - Analyst Blog
28 September 2012 - 3:00PM
Zacks
Wolverine World Wide
Inc. (WWW), one of the leading designers, manufacturers
and marketers of branded footwear and apparel, priced its $375
million worth of senior notes at 6.125%. Earlier this week, the
company stated that the debt offering will carry a guarantee of its
certain domestic subsidiaries, and is scheduled to mature in
2020.
Wolverine stated that the net
proceeds from the sale of debt would be around $367 million after
meeting the expenses and initial purchasers' discounts and will
only be offered to the qualified institutional buyers.
The company also stated that the
proceeds from the offering will be used to fund its acquisition of
the Performance + Lifestyle Group business (the "PLG Business") of
Collective Brands Inc (PSS). Apart from this, the
company intends to repay loans under its credit facility with the
amount.
Wolverine is focusing on enhancing
its portfolio of brands, thus the company announced the acquisition
of Collective Brands’ Performance + Lifestyle Group (PLG) unit. The
PLG unit sells footwear and related products, both wholesale and
retail, for children and adults under popular brands which include
Stride Rite, Sperry Top-Sider, Saucony, and Keds.
We expect the acquisition to
provide ample opportunities to Wolverine for boosting its growth
prospects while facilitating the company to enhance its portfolio
of brands.
Going forward, Wolverine expects
revenues to be in the low-to-mid-single-digit range, while earnings
are expected to remain flat year over year for the third quarter of
2012.
Moreover, for fiscal 2012, the
company expects total revenue in the range of $1.46 billion to
$1.50 billion, reflecting a year-over-year growth of 3.6% to
6.4%.
Currently, we are maintaining a
long-term ‘Neutral’ recommendation on the stock. However,
Wolverine, which competes with Deckers Outdoor
Corporation (DECK) and Skechers USA Inc.
(SKX), has a Zacks #4 Rank that translates into a short-term ‘Sell’
rating as secular headwinds act as short-term deterrents for the
stock.
DECKERS OUTDOOR (DECK): Free Stock Analysis Report
COLLECTIVE BRND (PSS): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
WOLVERINE WORLD (WWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Payless Shoesource (NYSE:PSS)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Payless Shoesource (NYSE:PSS)
Historical Stock Chart
Von Jul 2023 bis Jul 2024