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.

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