Moody’s gives Micron notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Micron Technology, Inc.'s new senior notes due 2025.

Proceeds are being used to refinance all of the 1.875% convertible senior notes due 2031, with the remaining funds building Micron's pool of liquidity for further debt repayments and other general corporate purposes.

Moody’s said the issuance of the senior notes to refinance convertible debt with a GAAP book value of $86 million, will lead to a modest increase in debt to EBITDA (Moody's-adjusted) to about 1.5 times from 1.3 times currently (latest 12 months ended May 29).

Nevertheless, the agency expects Micron to continue reducing debt over the next year given Micron's strong free cash flow generation and cash balance ($4.3 billion at May 29) [$4.8 billion including long-term marketable investments].

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