S&P rates Gerflor, loan B

S&P said it assigned preliminary B ratings to Gerflor’s intermediate parent Hestiafloor 2 and a proposed €850 million term loan B due 2027, with a recovery rating of 3. The company also plans to issue a €125 million revolving credit facility due 2027, assumed undrawn at closing.

The proceeds will be used to fund a buyout of Gerflor, refinance its debt and pay transaction costs. There is also €29 million of rolled over debt in the capital structure.

“We expect Gerflor will maintain a strong organic growth profile. Over the past five years, Gerflor has experienced strong average organic growth of 5.3%. This is thanks to an increasing rate for vinyl tiles over alternative flooring products, and the development of Gerflor’s product offerings on the back of continuous innovation,” said S&P in a press release.

The outlook is stable.

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