Fitch rates Synnex, notes BBB-

Fitch Ratings said it assigned BBB- ratings to Synnex Corp. and its planned issuance of $2.5 billion of senior unsecured notes in three tenors.

“Fitch expects Synnex to generate consistent mid-cycle FCF margins of approximately 1%-1.5%, excluding transaction costs, leading to FCF scale averaging $700 million per annum over the forecast horizon,” the agency said in a press release.

The agency noted management has explicitly committed to a long-term leverage target of 2.5x EBITDA.

Synnex will use the proceeds to refinance debt and to fund the acquisition of Tech Data Corp.

The outlook is stable.

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