S&P gives Tarkett Participation BB-

S&P said it gave BB- ratings to Tarkett Participation, the new parent company of Tarkett SA, and its new up to €950 million term loan and to the new €350 million revolving credit facility.

The Deconinck family, which is the controlling shareholder, plans to launch a tender offer on Tarkett shares. Wendel SA will invest as a minority shareholder and will hold up to 30% of the company. Wendel’s share purchase and the term loan will be used to buy out the other shareholders.

“Pro forma the transaction, we forecast that adjusted leverage will increase, with funds from operations (FFO) to debt of about 16%-18% at closing, from 30% in 2020,” S&P said in a press release.

Tarkett’s internal target for leverage is about 3x; this translates into S&P adjusted leverage of about 4x-4.1x, the agency said.

The outlook is stable.

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