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Fitch rates Sanmina-SCI notes BB+
Fitch Ratings said it assigned Sanmina-SCI Corp.'s proposed $600 million offering of senior unsecured floating-rate notes a rating of BB+/RR1.
The two-tranche debt offering consists of $300 million of notes due 2010 and $300 million due 2014. Fitch currently rates the company's issuer default rating at B+, senior secured credit facility at BB+, senior unsecured notes at BB+ and senior subordinated debt at B.
The outlook is negative.
Proceeds will be used to repay an existing $600 million senior unsecured term loan and to fund related fees and expenses.
The rating reflects the company's weak operating trends and significantly leveraged balance sheet compared with its peers, the agency said. The company has the highest leverage ratio in its industry, with a ratio of debt to operating EBITDA of 6.6 times, Fitch said.
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