S&P revises CPM outlook to positive

S&P said it revised its outlook for CPM Holdings Inc. to positive from stable and affirmed the B- ratings on the company and its first-lien credit facilities and the CCC+ rating on the second-lien term loan. The 3 recovery rating (rounded estimate: 50%) on the first-lien facilities and the 6 rating (rounded estimate: 10%) on the second-lien loan are unchanged.

“We expect healthy revenue growth in 2022 driven by solid demand across the majority of CPM's end markets and geographies. We expect strong growth in the company's thermal and crown segments, along with more modest growth in the extrusion and California pellet mill segments, all supported by record levels of backlog at calendar year-end 2021,” S&P said in a press release.

The agency said it sees CPM producing positive free cash flow in 2022.

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