Cohu Inc. Assigned 'BB-' Ratings On Xcerra Acquisition-Related Debt Issuance; Outlook Stable

Semiconductor testing technology and service provider Cohu Inc. plans to issue a $350 million senior secured term loan to fund its acquisition of Xcerra Corp. We assigned our 'BB-' corporate credit rating to Cohu, reflecting the firm's narrow focus on semiconductor back-end test equipment and leverage of approximately 3x at close. We also assigned our 'BB-' issue-level rating and '3' recovery rating to the company's new senior secured facilities. The stable outlook on Cohu reflects our expectation that the company will continue to grow its test handler and test contactor revenues, successfully integrate the Xcerra business, maintain a solid cash position, and generate positive free cash flow greater than $55 million in fiscal 2018. NEW YORK (S&P Global Ratings) Sept.

...+ Semiconductor testing technology and service provider Cohu Inc. plans to issue a $350 million senior secured term loan to fund its acquisition of Xcerra Corp. + We assigned our '##-' corporate credit rating to Cohu, reflecting the firm's narrow focus on semiconductor back-end test equipment and leverage of approximately 3x at close. + We also assigned our '##-' issue-level rating and '3' recovery rating to the company's new senior secured facilities. + The stable outlook on Cohu reflects our expectation that the company will continue to grow its test handler and test contactor revenues, successfully integrate the Xcerra business, maintain a solid cash position, and generate positive free cash flow greater than $55 million in fiscal 2018. NEW YORK (S&P Global Ratings) Sept. 4, 2018--S&P Global Ratings today assigned its '##-' issuer credit rating to Poway, Calif.-based Cohu, Inc. The outlook is stable. At the same time, we assigned our '##-' issue-level rating and '3' recovery rating to...

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