Bulletin: Tacala LLC's Proposed Dividend Recapitalization Will Not Immediately Affect Its Credit Quality

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) March 13, 2025--S&P Global Ratings today said that Tacala LLC's (B-/Stable/--) proposed dividend recapitalization will not immediately affect its assessment of the company's credit quality. Tacala plans to fund $143 million of shareholder distributions and pay $7 million of transaction-related fees using the proceeds from a $120 million fungible add-on to its existing first-lien term loan, along with $30 million of balance sheet cash. As of the end of fiscal year 2024, the company had no outstanding borrowings on its $55 million revolving credit facility, which matures in January 2029, and we expect it will remain undrawn following this transaction. While the recapitalization will raise Tacala's S&P

...March 13, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) March 13, 2025--S&P Global Ratings today said that Tacala LLC's (B-/Stable/--) proposed dividend recapitalization will not immediately affect its assessment of the company's credit quality. Tacala plans to fund $143 million of shareholder distributions and pay $7 million of transaction-related fees using the proceeds from a $120 million fungible add-on to its existing first-lien term loan, along with $30 million of balance sheet cash. As of the end of fiscal year 2024, the company had no outstanding borrowings on its $55 million revolving credit facility, which matures in January 2029, and we expect it will remain undrawn following this transaction. While the recapitalization will raise Tacala's S&P Global Ratings-adjusted leverage to 8.1x, all of our ratings--including the issuer credit rating and stable outlook--are unchanged. We expect the company will increase its revenue by the mid-single-digit...

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