Moody's assigns Baa3 to Marvell notes

Moody's Investors Service said it revised Marvell Technology Group Ltd.'s outlook to stable from negative and affirmed the Baa3 senior unsecured rating.

Moody's also rated Marvell Technology, Inc.'s (New Marvell) new senior notes at Baa3 and assigned a stable outlook.

Marvell plans to acquire Inphi for a per share price of $66.00 cash and 2.323 Marvell shares, or about $11 billion of total purchase price for Inphi's equity and convertible debt, including transaction fees. The acquisition will be funded with a combination of $3.75 billion of new debt financing from New Marvell and $7.3 billion of new equity issued by Marvell, which includes the new equity to refinance Inphi's convertible debt, Moody’s said.

Following closing, the Marvell shares will be exchanged for shares in New Marvell. Marvell has received all regulatory approvals to complete its acquisition of Inphi Corp. in a cash and stock transaction. The acquisition is subject to a shareholder vote. The acquisition is expected to close in mid-April.

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