Moody's rates Sanmina-SCI notes B1

Moody's Investors Service said it assigned a B1 rating to the proposed $300 million eight-year senior subordinated notes issue of Sanmina-SCI Corp. At the same time, the company's existing ratings and stable outlook were affirmed.

Moody's affirmed Sanmina's $500 million guaranteed senior secured first-lien revolving credit facility due 2007 at Ba1, $750 million 10 3/8% senior secured notes due 2010 at Ba2, $521.3 million 3% convertible subordinated notes due 2007 at B1, $614.2 million zero-coupon convertible subordinated debentures due 2020 at B1, senior implied rating at Ba2, senior unsecured issuer rating at Ba3 and SGL-1 speculative grade liquidity rating.

Net proceeds from this unregistered notes offering are expected to be utilized to refinance a portion of the company's existing zero-coupon convertible subordinated debentures due September 2020.

Moody's said the new rating assignment and affirmation of existing ratings reflect Sanmina's consistently solid operating performance, with healthy year-over-year and sequential sales growth, as well as margin expansion realized from stabilizing enterprise spend and an increased contribution from emerging end markets.

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