S&P puts Xperi on watch

S&P said it placed its BB- ratings Xperi Holding Corp. and its term loan on CreditWatch with negative implications.

Xperi plans to divide its products business and intellectual property licensing business into two independent, publicly traded companies. The IP business will be rebranded as Adeia and represents about 45% of Xperi’s consolidated revenues.

“The negative CreditWatch placement reflects our expectation that this separation will weaken credit metrics and meaningfully change the credit profile of Adeia as a pure-play IP licensing business. We could therefore lower the issuer credit rating after performing a full assessment of Adeia's stand-alone credit profile,” the agency said in a press release.

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