Caleres secures amended credit agreement ahead of Stuart Weitzman acquisition

US footwear company Caleres has secured an amendment of its existing credit agreement, extending its senior secured asset-based revolving credit facility to June 2030.

The deal comes ahead of the company’s acquisition of fellow footwear label Stuart Weitzman, which it is intending to take off the hands of luxury giant Tapestry.

Through the amended agreement, Caleres said its borrowing capacity will increase to 700 million dollars and comes with an accordion feature that will allow it to request an increase in the size of the facility to 950 million dollars in the aggregate.

In a statement, Jack Calandra, senior vice president and chief financial officer of Caleres, said the expanded facility provides the company “with enhanced liquidity and flexibility, and further strengthens the balance sheet”.

He added: “In the near term, after continuing to pay our dividend, Caleres’ capital allocation priorities are to complete the acquisition of Stuart Weitzman and invest in our growth vectors.

“Longer term, we will balance our investment priorities with debt reduction and returning capital to shareholders.”

Caleres announced its intention to acquire Stuart Weitzman in February, for a price tag of 105 million dollars in cash. The deal, which is expected to close in the summer of 2025, came as Tapestry sought to offload the premium shoe label as it looked to turn its attention towards its flagship brand, Coach.

For Caleres, meanwhile, the takeover reflects an effort to cement its “leadership position in women’s fashion footwear”, focusing on the more contemporary end of the market.