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Published on 6/15/2021 in the Prospect News Bank Loan Daily.

Moody's gives Herman Miller, loans Ba1

Moody's Investors Service said it gave a Ba1 corporate family rating and a Ba1-PD probability of default rating to Herman Miller, Inc. Moody's also assigned Ba1 ratings to the company's proposed $1.75 billion first-lien senior secured credit facilities and an SGL-1 speculative grade liquidity rating.

Herman Miller plans to acquire Knoll, Inc. in a deal valued at $1.8 billion using $560 million in cash and 17.1 million shares. Herman Miller will use a $725 million five-year senior secured revolving credit facility, of which $225 million will be funded at close, a $400 million five-year senior secured term loan A and a $625 million seven-year senior secured term loan B to help fund the acquisition and repay debt.

“Moody's expects that debt-to-EBITDA will be moderate at about 3.25x at close of the acquisition and gradually decline to 2.5x by the end of FY May 2023. This assumes that excess cash is used towards the repayment of debt with no outsized shareholder-friendly activities or acquisitions,” Moody’s said in a press release.

The outlook is stable.


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