Fitch rates Solectron notes B+

Fitch Ratings said it assigned a B+ rating to Solectron Corp.'s proposed $150 million senior subordinated notes due 2016 to be issued by Solectron Global Finance Ltd. (Cayman), an indirect finance subsidiary of Solectron formed for the sole purpose of issuing debt securities. Solectron will guarantee the proposed notes on a senior subordinated basis.

Proceeds from the offering, together with available cash, are expected to be used to repay roughly $150 million of 7 3/8% senior unsecured notes due March 1. Pro forma for this refinancing, Solectron's total debt is expected to be about $705 million, comprised primarily of the proposed note offering, $450 million 0.5% convertible senior notes due 2034 and $63 million 7.97% subordinated notes due November 2006, the agency said.

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