Tacala LLC 'B-' Rating Affirmed On Proposed Dividend Recapitalization; Outlook Stable

Tacala LLC plans to issue incremental first- and second-lien debt to fund a special dividend to shareholders. We are affirming our 'B-' issuer credit rating on Tacala. The outlook is stable. At the same time, we are affirming our 'B-' issue-level rating on the company's first-lien credit facility and 'CCC' rating on its second-lien term loan. The '3' and '6' recovery ratings, respectively, are unchanged. The stable outlook reflects our expectation for modest improvement to credit metrics following the transaction on continued gradual EBITDA expansion. We also expect consistent positive free operating cash flow (FOCF) and adjusted debt to EBITDA declining to the high-6x area at the end of fiscal 2020. NEW YORK (S&P Global Ratings) Oct. 31, 2019--S&P Global

...October 31, 2019 - Tacala LLC plans to issue incremental first- and second-lien debt to fund a special dividend to shareholders. - We are affirming our 'B-' issuer credit rating on Tacala. The outlook is stable. - At the same time, we are affirming our 'B-' issue-level rating on the company's first-lien credit facility and '###' rating on its second-lien term loan. The '3' and '6' recovery ratings, respectively, are unchanged. - The stable outlook reflects our expectation for modest improvement to credit metrics following the transaction on continued gradual EBITDA expansion. We also expect consistent positive free operating cash flow (FOCF) and adjusted debt to EBITDA declining to the high-6x area at the end of fiscal 2020. NEW YORK (S&P Global Ratings) Oct. 31, 2019--S&P Global Ratings today took the rating actions listed above....

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