San Jose, Calif.-based Sanmina-SCI Corp. is a leading provider of electronic manufacturing services for the computing, telecommunications, and data communications industries. Credit measures deteriorated over the past year as manufacturing overcapacity arising from a severe and prolonged industry downturn caused capacity utilization to fall well below desired levels. This downturn has been particularly pronounced in Sanmina's printed circuit board (PCB) fabrication business, which had been a major contributor to profitability and cash flow generation. Sanmina will use proceeds from the debt issue and term loan to repay debt under its existing credit facility, repay the outstanding balance under its receivables securitization facility, refinance or restructure its other debt, and fund further expansion of its business and working capital. Standard&
