S&P Global Ratings is correcting an error in its adjusted debt calculation for Tacala LLC (Tacala) to include the preferred equity issued by parent company ACP Tacala Holdings L.P. In our view, the preferred instrument is a debt-like obligation and adds approximately 1.2x of leverage as of Sept. 3, 2024. The correction of this error has no rating impact. We affirmed our 'B-' issuer credit rating on Tacala. The stable outlook reflects our expectation that Tacala will continue to expand its EBITDA base from top-line growth, easing commodity inflation, and improved labor retention, improving S&P Global Ratings-adjusted debt to EBITDA toward 7.2x over the next 12 months. We project revenue will grow approximately 10% in fiscal 2024, primarily driven by
