Tacala LLC 'B-' Rating Affirmed Following Correction Of Debt Calculation; Outlook Stable

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. NEW YORK (S&P Global Ratings) Nov. 20, 2024--S&P Global Ratings today took the

...November 20, 2024 - 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. NEW YORK (S&P Global Ratings) Nov. 20, 2024--S&P Global Ratings today took the rating actions listed above. We corrected an error in our debt calculation of Tacala LLC. We now include convertible and senior nonconvertible preferred equity issued by Tacala's parent, ACP Tacala Holdings L.P., in our adjusted...

Ratings Action