S&P: Collective on watch

Standard & Poor's said it placed Collective Brands Inc.'s B corporate credit rating, B+ senior secured term loan rating and CCC+ subordinated debt rating on CreditWatch with negative implications.

The CreditWatch placement follows news that unrated Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital intend to acquire Collective for about $2 billion, including the assumption of debt, S&P said.

The three buyers have formed an acquisition company to purchase the footwear retailer and wholesaler, the agency said.

The transaction will potentially weaken Collective's financial risk profile through the addition of a meaningful amount of debt with one or more of the buyers, S&P said.

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