Research Update: Brown Shoe Co. Inc. Ratings Placed On CreditWatch Negative
Standard & Poors, March 2005
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Product Type: Research Update
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Abstract
On March 16, 2005, Standard & Poor's Ratings Services placed its 'BB' corporate credit rating for Brown Shoe Co. Inc. on CreditWatch with negative implications. The rating action follows Brown Shoe's recent announcement that it has entered into a definitive agreement to acquire privately held Bennett Footwear Group LLC for $205 million in cash, representing a 2004 EBITDA multiple of 6x-7x. In addition, terms provide for performance-based payments of up to $42.5 million over a three-year period if certain financial targets are met. Bennett owns and licenses footwear brands in the better and bridge categories, and generated sales of about $200 million in 2004. The acquisition will be funded initially with a bridge credit facility, borrowings under an existing $350...
Companies mentioned in this report are: Brown Shoe Co. Inc.
Action: On CreditWatch:Negative
Brown Shoe Co. Inc.
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