Moody's upgrades Macom

Moody's Investors Service said it upgraded Macom Technology Solutions Holdings, Inc.’s ratings, including the corporate family rating to B2 from B3, the senior secured term loan to Ba2 from B3 and the speculative grade liquidity rating to SGL-2 from SGL-3. The outlook is positive.

The upgrade follows its plans to repay about $500 million of the term loan using $100 million of balance sheet cash and the net proceeds from the issuance of convertible senior notes due 2026. The repayments will improve free cash flow generation by lowering cash interest expense, Moody’s said.

“The upgrade to the CFR and the positive outlook also reflects Macom's improved operating profile due to strengthening end-market demand and the positive impact of Macom's operational restructuring efforts. Moody's anticipates that the strengthening end-market demand and expense discipline will allow Macom to generate increasing profitability over the near term,” the agency said in a press release.

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