S&P gives SunOpta revolver B+

S&P said it gave SunOpta Inc.’s $250 million asset-based lending revolver B+ and 1 recovery ratings. The 1 recovery rating indicates high (90%-100%; rounded estimate: 95%) recovery in default.

Concurrently, the agency affirmed SunOpta’s B- issuer rating and changed the outlook to positive from stable.

The outlook reflects lower risk following a significant debt paydown, S&P said. On Dec. 30, SunOpta completed the sale of its global ingredients segment to Amsterdam Commodities NV for about $374 million. SunOpta then repaid a significant portion of its revolver and senior secured notes in full.

“This debt repayment was almost $85 million higher than our previous expectations. As a result, debt to EBITDA as of year-end 2020 improved to 3.6x, which is a meaningful improvement compared with our previous expectation of about 6x,” S&P said in a press release.

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