S&P rates MaxLinear loan BB-

S&P said it gave its BB- rating to MaxLinear Inc.'s planned $350 million first-lien term loan due 2028. The recovery rating is 3, indicating expectations for meaningful (50%-70%; rounded estimate: 55%) recovery in default.

MaxLinear intends to use the proceeds to fully repay its term loans, also rated BB-, with a total outstanding amount of about $350 million maturing in 2023 and 2024.

“As a result, we do not expect the transaction to materially affect our forecast credit metrics,” S&P said in a press release.

MaxLinear also plans to obtain an undrawn $100 million revolving credit facility maturing in 2026, “We do not rate the RCF, which we expect to have a springing covenant based on a maximum secured leverage ratio,” the agency said.

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