Advancion’s cash flow trajectory is unlikely to turn around as it battles price volatility in the raw materials it uses to make nitroalkanes and other additives, said two sources familiar with the matter.

The Golden Gate Capital and Ardian-backed specialty chemical company has historically been able to pass through increased costs to its customers, though there is uncertainty on whether this can continue, said the sources.

Questions on Advancion’s ability to start generating cash again come as the company faces a maturity wall starting with its revolving credit facility and PIK toggle notes later this year.

The company has been working with Evercore and Latham & Watkins as advisors, said two additional sources familiar with the matter. Centerview Partners is advising a group of lenders, the two sources added. Debtwire previously reported that the lender group had organized with Gibson Dunn as legal counsel.

Advancion relies on raw materials like propane, ammonia and formaldehyde that are tied to natural gas pricing, according to Fitch. Energy prices have been volatile in the wake of the US and Israel’s attack on Iran, though Advancion operates plants in the US where there is abundant natural gas.

Last month, Advancion filed trade complaints with the US government agencies, asking the government to impose extra duties on imports of a chemical called Tris from China. Advancion claimed Chinese producers are selling Tris in the US at unfairly low prices and are benefitting from government subsidies, which has hurt US manufacturers.

In a recent update to investors, Advancion reported that 1Q26 revenue fell 6% YoY to USD 100.5m and adjusted EBITDA gained 9.5% YoY to USD 46m, the first two sources said. For the full year of 2025, Advancion reported a 7% YoY decline in revenue to USD 388m and a 6% drop in adjusted EBITDA to USD 186m, the sources added.

The issuer’s capital structure comprises a USD 125m revolver due September 2026, USD 547m SOFR+ 375bps first lien term loan due November 2027, a EUR 350m Euribor+ 400bps first lien term loan due November 2027, a USD 345m SOFR+ 775bps second lien term loan due November 2028, and USD 225m 10% PIK toggle notes due November 2026, according to Markit.

The USD 547m term loan due 2027 was last quoted 90/92.1 down from 95.2/96.6 on 21 April, per Markit. The EUR 350m term loan due 2027 was quoted 88.9/91.3 and the USD 345m second lien term loan due 2028 was quoted 77/82 today, down from 83/87 on 21 April.

The PIK toggle notes due 2026 was quoted at 80 today, down one point from yesterday, according to Markit.

Top lenders to Advancion include Anchorage Capital, Five Arrows Managers, Benefit Street Partners, BlackRock/HPS, Palmer Square Capital and Investcorp Credit Management, according to CLO-I data.

Advancion, Golden Gate, Ardian, Gibson Dunn, Centerview, Evercore, and Latham & Watkins did not respond to requests for comments.