S&P gives Marvell bonds BBB-

S&P said it gave Marvell Technology Inc. and its planned bonds BBB- ratings.

Marvell Technology sold $2 billion of unsecured senior notes in three parts to help finance the acquisition of unrated Inphi Corp. for about $10 billion.

Marvell Technology will become the new parent of Marvell Technology Group Ltd. S&P also affirmed Marvell Technology Group’s BBB- rating.

“We continue to expect strong revenue growth, EBITDA expansion and the temporary pause in share buybacks and acquisitions to support deleveraging over the next 18-24 months post-close. We estimate pro forma adjusted leverage (including synergies) in the low-3x area at close and expect it to decline to the 2x level in 2022 – consistent with our prior expectations,” the agency said in a press release.

The outlook is stable.

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