S&P rates AMI Semiconductor loan BB-

Standard & Poor's said it assigned its BB- senior secured rating to AMI Semiconductor Inc.'s proposed $110 million term loan. The recovery rating is 3.

At the same time, S&P affirmed its BB- corporate credit and its BB- senior secured and 3 recovery ratings on the company's existing $300 million senior credit facilities.

The new term loan will be used to partially finance AMI's $135 million acquisition of Flextronics Inc.'s semiconductor business. Terms of the new loan are identical to its existing credit facilities and subject to existing lenders' approval.

S&P said its ratings on AMI reflect a niche product focus, limited scale and volatility in the company's smaller digital and foundry businesses. These factors partly are offset by the company's sole-source agreements to provide semiconductor chips and its diversified customer and end-market base.

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