Tarkett increases its available liquidity €245 million of additional credit lines
Paris, May 26 2020 – Tarkett today announces it has obtained €245 million of additional financing. This reinforces an already solid level of liquidity.
Tarkett has set up a €175 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 (RCF) signed in 2019, namely BNP-Paribas, Groupe Crédit Agricole, Commerzbank, HSBC, Société Générale, as well as BECM and La Banque Postale.
This new line comes together with a €70 million loan, granted within the “PGE” framework (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. 90% of this loan is guaranteed by the French State. Tarkett has committed not distributing a dividend in 2021 in the event these new credit lines are drawn.
This additional €245 million liquidity adds up to the €443 million available on existing committed credit lines at the end of March. Including the €217 million cash position at the end of March 2020, Tarkett has now a liquidity level of around €900 million.
In addition, Tarkett has obtained from its banking partners a one year extension of its RCF signed in 2019 and a waiver of its financial covenant for end of June and end of December 2020 (leverage of respectively 3.5x and 3.0x).
There is no cost associated with this waiver.
In this unprecedented context, Tarkett is pleased to rely on its banking partners who have renewed their confidence in the Group.
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