S&P rates Gigamon B-, facilities B, CCC

S&P said it assigned a B- corporate credit rating to Gigamon Inc.

The outlook is stable.

At the same time, the agency assigned a B issue-level rating to the company's $450 million first-lien credit facilities, which consist of a $400 million first-lien term loan and a $50 million revolver.

The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 70%) recovery for lenders in the event of payment default.

S&P also assigned a CCC issue-level rating to the company's $150 second-lien term loan. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 5%).

The agency said the corporate credit rating reflects the company's small scale and narrow focus in the nascent network packet broking market segment with competition from larger and more diversified players including Cisco Systems Inc., Keysight Technologies and Broadcom Ltd.

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