Moody’s rates CPM loans B1, Caa1

Moody's Investors Service said it affirmed CPM Holdings, Inc.'s B2 corporate family rating and probability of default rating at B2-PD.

The agency also assigned a B1 rating to the company’s $30 million first-lien senior secured revolving credit facility due 2019 and $310 million first-lien senior secured term loan B due 2021 and a Caa1 to its $100 million second-lien senior secured term loan due 2022.

The outlook is stable.

Proceeds, along with balance sheet cash, will be used to refinance roughly $369 million of existing debt, fund a sponsor dividend, and pay related fees and expenses.

"Mid-cycle credit metrics remain consistent with a B2 rating and liquidity is good, but this transaction stretches the boundaries of the rating considering the company's inherent volatility," Ben Nelson, Moody's assistant vice president and lead analyst for CPM, said in a news release.

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