U.S.-based metals powders producer Alchemy International Holdings LLC (Kymera) announced that it is acquiring titanium alloys producer Reading Alloys Inc. (not rated) from AMETEK Inc. for $250 million. Financing for the acquisition includes a $165 million add on to Kymera's $240 million term loan and an $80 million equity contribution from Palladium Equity--Kymera's private equity sponsor. We are affirming our 'B' issuer credit rating on Kymera, and our 'B' issue-level rating on the company's first-lien term loan, along with a '3' recovery rating, indicating our expectation of meaningful recovery in a payment default. The outlook is stable, reflecting our view that Kymera's leverage will remain around 5x over the next year. The stable outlook reflects our view that while the
