S&P rates Marvell Technology notes BBB-

S&P said it assigned its BBB- issue-level rating to Marvell Technology Group Ltd.'s proposed senior notes.

The rating is the same as the long-term corporate credit rating on Marvell.

The company intends to use the net proceeds to partially fund its $6 billion pending acquisition of Cavium Inc. and repay debt.

If the transaction does not close by March 31, 2019, the company will be required to redeem the notes.

S&P said the rating on Marvell reflects the anticipated improved economies of scale from the acquisition of Cavium amid a consolidating semiconductor industry, solid market position in storage controller technologies, and expansion of revenues in the fast-growing solid-state drive market.

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