S&P rates Cypress loan BB+

Standard & Poor’s said it affirmed the BB- corporate credit rating on Cypress Semiconductor Corp.

The agency also said it assigned a BB+ rating and recovery rating of 1 to the company’s $100 million senior secured term loan due 2020.

S&P also said it raised the rating on the company’s $550 million revolving credit facility due 2020 to BB+ from BB and revised its recovery rating to 1 from 2.

The 1 recovery rating on these instruments indicates 90% to 100% expected default recovery.

S&P also said it also affirmed the B rating on the company’s existing $150 million convertible notes due 2020. The 6 recovery rating on the notes indicates 0 to 10% expected default recovery.

The outlook is stable.

The ratings are based on the company’s significant financial risk profile, which considers its adjusted leverage in the mid-2x range at the end of 2015, S&P said.

Although its leverage is almost one turn lower as compared to the capital structure proposed last month, the agency said the company is still in the process of integrating Spansion and working toward improving margins through synergies from the Spansion acquisition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.