Herman Miller Inc. Assigned 'BB+' Rating On Plans To Acquire Knoll Inc.; Proposed Debt Rated 'BBB-'

U.S.-based Herman Miller Inc. has agreed to acquire Knoll Inc. in a cash and stock transaction valued at $1.8 billion. S&P Global Ratings expects the transaction to close by the end of the third quarter of 2021. The company intends to borrow $1.05 billion under its proposed $1.75 billion senior secured credit facility (consisting of a $725 million revolver [$225 million drawn at close], $400 million term loan A, and $625 million term loan B), issue equity to Knoll shareholders, and use existing cash to purchase Knoll including its preferred equity, retire debt at both companies, and pay deal fees and expenses. We assigned our 'BB+' issuer credit rating to Herman Miller and our 'BBB-' rating to the proposed senior

...June 15, 2021 - U.S.-based Herman Miller Inc. has agreed to acquire Knoll Inc. in a cash and stock transaction valued at $1.8 billion. S&P Global Ratings expects the transaction to close by the end of the third quarter of 2021. - The company intends to borrow $1.05 billion under its proposed $1.75 billion senior secured credit facility (consisting of a $725 million revolver [$225 million drawn at close], $400 million term loan A, and $625 million term loan B), issue equity to Knoll shareholders, and use existing cash to purchase Knoll including its preferred equity, retire debt at both companies, and pay deal fees and expenses. - We assigned our '##+' issuer credit rating to Herman Miller and our '###-' rating to the proposed senior secured credit facility. The '2' recovery ratings on the credit facilities indicate our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a default. - The stable outlook reflects our expectation that over the next year, Herman...

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