S&P turns Tackle view to stable

S&P said it changed Tackle Sarl’s (Tipco) outlook to stable from negative, reflecting the view it will be able to smoothly manage the implementation of the new regulatory regime and generate a high level of free operating cash flow over the next 12 months.

Tipco plans to refinance its two term loans B with a €1.455 billion term loan B maturing in 2028.

“The transaction is leverage-neutral on both gross-debt and S&P Global Ratings-adjusted bases. (In our adjustments, we don't net cash.) The contemplated transaction includes a €351 million of dividend distribution to be paid in 2021 with existing cash on the balance sheet. We view the refinancing as a positive credit factor, particularly because it removes the near-term maturity risk of the 2022 term loan B,” S&P said in a press release.

The agency said it plans to withdraw the B ratings on the outstanding term loans upon completion of the refinancing and repayment.

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