Moody's assigns TCG, loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to TCG AcquisitionCo BV. Concurrently, the agency gave B2 instrument ratings to the €315 million senior secured term loan B maturing in September 2028 and the €65 million senior secured revolving credit facility maturing in March 2028.

The B2 rating reflects its leading market position, moderately growing end markets at low single digits in sports and high single digits in landscaping as artificial turf allows for increased usage and water savings, vertical integration, diversified customer base and relatively good cash generation the agency noted.

However, the rating is weakly positioned in the B2 category by the company’s relatively small size with €471 million of revenue LTM July, limited product and production diversification with only four manufacturing plants, a highly competitive end market, relatively high starting leverage of 5.8x, which Moody's said it projects to retreat to below 5.5x over the next 12-18 months and other factors.

The proceeds will serve to finance TCG's acquisition by private equity firm Crestview from Royal Ten Cate. The agency said it expects the revolver to be drawn by about €10 million at closing of the acquisition.

The outlook is stable.

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