S&P rates Tessera loan BB-

S&P said it assigned a BB- corporate credit rating to Tessera Technologies Inc.

The agency also said it assigned a BB- rating to the company's proposed $600 million senior secured term loan B.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

The rating reflects a view of the company's volatile operating history, reliance on litigation to generate revenues and high customer concentration, S&P said.

The stable outlook considers a view that Tessera will successfully integrate the acquisition of audio technology solutions provider DTS Inc. and continue to effectively sign new contracts and renew existing contracts while generating strong margins and good free cash flow, the agency said.

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