S&P rates Stats ChipPAC notes BB+

Standard & Poor's said it assigned its BB+ issue rating to the proposed issue of medium-term benchmark-sized senior unsecured notes by Stats ChipPAC Ltd. (BB+/stable).

The proceeds from the bond issue should significantly contribute to the company's capital-reduction exercise, which comprises: (1) refinancing most existing debt and (2) funding the company's proposed distribution of about $813 million in cash to shareholders, the agency noted.

S&P said that the proposed notes would rank legally as senior unsecured debt.

In calculating the company's secured debt, S&P said it: (1) capitalizes operating leases, (2) assumes full drawdown of the company's proposed revolving credit facility of $150 million and (3) factors in the debt repayment schedule of the proposed term loan.

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