Moody's rates Sanmina-SCI notes B1

Moody's Investors Service said it assigned a B1 rating to the proposed $600 million ten-year senior subordinated notes issue of Sanmina-SCI Corp. Moody's also affirmed the company's Ba2 corporate family rating, Ba2 $750 million senior secured second-lien notes due 2010, B1 $400 million senior subordinated notes due 2013, SGL-1 speculative grade liquidity rating and SCI Systems Inc.'s B1 $521 million 3% convertible subordinated notes due 2007.

The outlook remains negative.

Proceeds from the offering, along with existing cash on hand, are expected to finance a tender offer of the company's existing Ba2 $750 million senior secured second-lien notes due 2010.

S&P said the ratings reflect Sanmina-SCI's good market position and diversified product and end market services within the electronic manufacturing service space.

However, the rating also reflects the highly competitive and volatile business environment as well as its weak profitability and return measures, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.