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S&P gives BB to Allegro loan
S&P said it gave BB issue-level rating on Allegro MicroSystems Inc.’s planned $250 million senior secured term loan to help fund the $420 million acquisition of Crocus Technologies.
The agency also affirmed Allegro’s B+ issuer rating and will withdraw the BB rating on the outstanding $25 million senior secured term loan due in 2027 when it is fully repaid at transaction close.
“Allegro's leverage should remain below 1x following the partly debt-funded acquisition of Crocus. We generally do not view the acquisition as material enough to change our credit rating. Allegro should maintain low pro forma leverage at about 0.8x at transaction close, well below our downside threshold of 4x,” S&P said in a statement.
The outlook is stable.
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