S&P rates Alcami loans B

S&P said it assigned a B- long-term corporate credit rating to Alcami Corp.

S&P also assigned a B issue-level and 2 recovery rating to the first-lien tranche, consisting of a $50 million secured revolver and $237.5 million term loan. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default.

Alcami also is issuing a second-lien term loan, which is unrated.

“Our ratings on Alcami reflect its high leverage, expected cash flow deficits for the next two to three years, and niche focus on outsourced clinical-stage pharmaceutical development and manufacturing,” S&P said in a news release.

“Our ratings also consider relatively recent entry into the fragmented contract development and manufacturing (CDMO) sector.”

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