Moody’s assigns B3 to Tacala loans

Moody’s Investors Service said it assigned B3 ratings to Tacala Investment Corp.’s new $725 million senior secured first-lien term loan due 2031 and its new $55 million senior secured first-lien revolving credit facility due 2029.

Concurrently, the agency said it affirmed Tacala’s B3 corporate family and B3-PD probability of default ratings.

The new term loan will be used to repay the company's $553.7 million senior secured first-lien term loan and $160 million senior secured second-lien term loan, which are both rated B2. The company will also replace its $55 million senior secured first-lien credit facility due 2025 with a $55 million senior secured first-lien revolving credit facility due February 2029.

The refinancing will increase debt balances by about $10 million and is expected to reduce interest expense as the company repays its high-cost second-lien loan, Moody’s said. The lower B3 rating reflects the loss of the second-lien loan as a layer of protection for first-lien lenders.

The outlook remains stable.

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