BNP Paribas, Groupe Crédit Agricole, Commerzbank, HSBC, Société Générale, BECM and La Banque Postale will provide Tarkett with a €175 million ($192.85 million) short term revolving credit facility with a one-year maturity, extendable by six months at the group’s discretion, then by another six months at the banks’ discretion. This club deal includes the five bookrunners of the revolving credit facility signed in 2019, namely BNP Paribas, Groupe Crédit Agricole, Commerzbank, HSBC and Société Générale.
The club deal is part of a total of €245 million ($269.99 million) of additional financing for Tarkett. The financing also includes a €70 million loan ($77.14 million), of which 90% is guaranteed by the French State. This one-year maturity loan benefits from an extension option ranging from one to five years and is set-up with the seven banks of the club deal. Tarkett will not distribute a dividend in 2021 in the event these new credit lines are drawn.
This additional €245 million ($269.99 million) liquidity adds up to the €443 million ($488.18 million) available on existing committed credit lines at the end of March. Including the €217 million ($239.13 million) cash position at the end of March 2020, Tarkett now has a liquidity level of around €900 million ($991.8 million).
In addition, Tarkett has obtained from its banking partners a one year extension of its revolving credit facility signed in 2019 and a waiver of its financial covenant for the end of June and end of December 2020 (leverage of 3.5x and 3.0x, respectively). There is no cost associated with this waiver.
Tarkett is a provider of flooring and sports surface solutions, with net sales of €3 billion ($3.31 billion) in 2019.