Contract development and manufacturing organization (CDMO) Albany Molecular Research Inc. (AMRI) announced plans to refinance all of its outstanding debt in a transaction related to the acquisition by The Carlyle Group and GTCR LLC. We expect adjusted debt leverage in the 7x area, discretionary cash flow of about $20 million, and adjusted EBITDA interest coverage in the mid-2x range, despite about $200 million in incremental debt and about $11 million higher annual interest expense. We are affirming our 'B' corporate credit rating and removing the rating from CreditWatch. The outlook is stable. We are assigning a 'B+' rating to AMRI's new revolver and first-lien term loan and a 'B-' rating to the new second-lien term loan. The recovery ratings are
