I keep thinking that the perfect audio backdrop to this post would be the iconic Pink Floyd song, with its cash register “kachinging” in the background. This week, Wolverine’s finance team completed a significant transaction to raise about $100 million for Wolverine’s construction needs for the next few years. Chad Geiger led the effort this time. You may guess that Wolverine borrows from a bank, but the answer is a little more complicated.
Remember back in March, Wolverine traveled to New York City to make our annual pitch to the rating agency Standard & Poor’s (S&P). S&P issued its report a few weeks later and raised Wolverine’s debt rating to A (Stable). This rating places Wolverine among the highest rated G&T cooperatives in the country.
The rating is just one small piece of the effort, though. Wolverine maintains and fosters relationships with a number of banks and insurance companies. Insurance companies lend money to corporations, and they especially like cooperatives because they view our industry as a low risk place to invest their cash.
Wolverine worked with a broker who pitched the Wolverine deal to a number of insurance companies and coordinated investor calls and document flow. Last week, Wolverine led a call for interested lenders in which Janet Kass and I outlined Wolverine’s strategy, why we need to raise money, and how we will use the money. Over the next few days, Janet and Chad worked feverishly to answer lender questions and provide follow-up data.
The deal finalized on Monday, setting terms and interest rates. In addition to three lenders who have participated in past deals (Met Life, Voya, and TIAA-CREF), two new prominent companies joined our lending group on this deal — Northwest Mutual Life, and John Hancock. The bottom line … $115 million, paid back over 30 years, at a fixed rate of 3.83 percent! This deal results from years of work that includes the financial strength Wolverine members allow it to have, our repeated efforts to improve our Wolverine story, and hundreds of hours of work by Chad and Janet. Join me in telling Chad, “Good Job!”
Congratulations Chad! Another win for the Wolverine family.
I am so proud to tell people where I work. Things are happening here. Building a new headquarters and power plant. Rebuilding our transmissions system. Investing millions into our control center software. While still keeping our members rates stable. It’s a very exciting time to be an employee at Wolverine.
Great Job Chad and Janet!
Good Job Chad! Thank you for your hard work.
What great news. The efforts by senior staff to position the company’s finances in a strong way deserves kudos! Let’s keep building a strong G&T for Michigan.
Excellent work, Chad and Janet!
We on the Wolverine Board are so proud of the great accomplishments over the past several years. A great debt placement at a very attractive rate. This outcome reflects well on on the solid balance sheet, management team, staff, and “can do” culture at Wolverine! Congratulations on another great success.