Moody’s rates MaxLinear, term loan Ba3

Moody's Investors Service said it assigned MaxLinear, Inc. a Ba3 corporate family rating, a Ba3-PD probability of default rating, a Ba3 rating to the $425 million senior secured term loan B and a speculative grade liquidity rating of SGL-2.

The outlook is stable.

MaxLinear intends to use the term loan B proceeds and balance sheet cash to acquire Exar Corp. for $13 cash per share, or about $695 million (excluding transaction expenses).

Moody’s said the Ba3 CFR reflects the company’s established niche market positions in broadband access radiofrequency chips used in television set-top boxes and home wireless network systems, consistent free cash flow generation, and valuable intellectual property as indicated by the high gross margins, which the agency expects will remain in the upper fifties percent level.

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