Curia Global first-lien term loan retreats in trading with ratings downgrade by S&P

By Sara Rosenberg

New York, Jan. 4 – Curia Global Inc. (formerly known as Albany Molecular Research Inc.) saw its first-lien term loan soften in trading during Wednesday’s market hours after S&P Global Ratings downgraded the company’s ratings.

The first-lien term loan was quoted at 79½ bid, 81½ offered, down from 82 bid, 83½ offered, a trader remarked.

S&P cut the company’s issuer credit rating and senior secured facilities rating to CCC+ from B-. The outlook is stable.

The rating agency said the downgrade reflects the view that the company will continue to face significant challenges in 2023, resulting in ongoing cash flow deficits. According to S&P, Curia’s recent results were weaker than expected as ongoing inflationary headwinds in its manufacturing division combined with weak demand in parts of its research and development business segment continue to pressure the profitability and cash flow generation, causing leverage to increase to above 10x and consuming liquidity.

The stable outlook reflects the expectation that liquidity will remain adequate over the next 24 months. S&P said the company’s current liquidity includes about $35 million cash and cash equivalents, $15 million under a new $90 million asset-based lending facility and full availability under its $170 million revolving credit facility.

Curia is an Albany, N.Y.-based pharmaceutical contract research, development and manufacturing organization.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $15 million and loan ETFs were negative $63 million, market sources said.

Actively managed high-yield fund flows on Tuesday were negative $305 million and high-yield ETFs were positive $159 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.07% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.07%.

Average secondary market bids in the U.S. on Tuesday were 91.96, up 0.01% from the previous day and up 0.01% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were EyeCare Partners’ February 2020 covenant-lite term loan B at 84.58, up from 79.67, AMC Entertainment’s April 2019 covenant-lite term loan B at 55.38, up from 53.85, and Brand Energy’s June 2017 covenant-lite term loan at 91.31, up from 89.25.

Some top decliners on Tuesday were Mitel Networks’ November 2018 covenant-lite fourth out no roll-up term loan at 22.50, down from 31.25, NBG Home’s April 2017 covenant-lite term loan at 25.83, down from 27.50, and Epic Y-Grade’s July 2020 term loan at 85.92, down from 89.

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