S&P rates Cypress convertibles B

S&P said the BB- corporate credit rating on Cypress Semiconductor Corp. is unchanged following a change in the company's capital structure.

The outlook remains negative.

The agency also said it assigned a B rating to the company's proposed $250 million senior unsecured convertible notes due 2022.

The B issue-level rating on the company's $150 million convertible notes due 2020 is unchanged. The 6 recovery rating on the unsecured convertible notes indicates 0 to 10% expected default recovery.

The BB- rating on the company's senior secured debt, which is comprised of a $100 million term loan A and the $450 million term loan B, is unchanged. The 3 recovery rating indicates 50% to 70% expected default recovery.

The proceeds from the proposed senior unsecured convertible notes and the senior secured term loan B will be used to fund the company’s acquisition of Broadcom's wireless business, S&P said.

The company previously planned to issue a $700 million term loan B, the agency said.

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