S&P shifts Alcami view to negative

S&P said it shifted Alcami Corp.’s outlook to negative from stable and affirmed the CCC+ issuer credit rating, and CCC+ first-lien senior secured term loan and revolver ratings on Alcami. The second-lien term loan is not rated.

“The outlook revision on Alcami reflects ongoing cash flow deficits that are eroding liquidity, and limited room for operational delays as the company invests in building new capacity at its Research Triangle Park (RTP) sterile manufacturing facility. The largest production lines at the facility have already been delayed by about one year. The rating and outlook also reflect the challenge management faces in restoring the company to profitability and positive free cash flow,” S&P said in a press release.

The agency said it sees Alcami’s cash position will be under $10 million at the end of the first quarter 2022, providing limited financial flexibility.

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