S&P gives BBB- to Sanmina loan

S&P said it is assigning a BBB- issue-level rating and 2 recovery rating to Sanmina Corp.'s $375 million secured delayed-draw term loan due Nov. 30, 2023. The 2 recovery rating reflects an expectation for substantial recovery (70% to 90%, rounded estimate: 80%) in the event of payment default.

These ratings are the same as the ratings on Sanmina's existing secured debt.

Sanmina will use the proceeds to repay its $375 million secured notes due June 2019.

At the same time, S&P said it affirmed its BBB- rating on the company's $500 million revolving credit facility due Nov. 30, 2023. The 2 recovery rating is unchanged.

“Our BB+ issuer credit rating on the company is unchanged. The rating reflects Sanmina's highly competitive and cyclical industry conditions and its meaningful client concentration, with its top 10 customers representing about half of revenues,” S&P said in a news release.

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