Moody's cuts Curia, gives B2 to add-on

Moody's Investors Service said it downgraded Albany Molecular Research, Inc.'s (Curia Global, Inc.) corporate family rating to B3 from B2, and its probability of default rating to B3-PD from B2-PD. Concurrently, Moody's affirmed B2 ratings on the senior secured first-lien facility due 2024, and assigned a B2 rating to a $310 million first-lien term loan add-on due 2026.

The rating actions follow Curia’s announcement it will use the incremental term loan and an unrated $340 million second-lien term loan to acquire Integrity Bio, Inc. and LakePharma, Inc., pay related fees and expenses and for general corporate purposes, Moody’s said.

“The downgrade of the corporate family rating to B3 from B2 reflects meaningful weakening in Curia's credit metrics, with a substantial increase in pro forma debt/EBITDA to 7.6x (up from 5.1x), as of June 30, 2021, on Moody's adjusted basis. The downgrade also reflects expected weakening of the company's cash flows over the next 12 to 18 months, constrained by incremental interest burden, growth capital expenditures, working capital outlays, and potential earnouts/deferred purchase price associated with the acquisitions of LakePharma and Integrity,” the agency said in a press release.

The outlook is stable.

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