Moody's upgrades Spansion

Moody's Investors Service said it raised Spansion LLC's speculative grade liquidity rating to SGL-2 from SGL-3 and affirmed the B1 corporate family rating and the instrument ratings.

The outlook remains stable.

Moody's said the upgrade of the speculative grade liquidity rating reflects Spansion's good liquidity driven by the following factors: (a) Replacement of the existing ABL facility with a new, unrated, committed revolver ($50 million availability); (b) extension of the term loan maturity to 2018 from 2015 and a lighter covenant package with additional headroom; and (c) expected future proceeds from the sale of the company's Sunnyvale headquarters ($65 million).

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