S&P: Anaren affirmed after add-on news

Standard & Poor’s said it affirmed the B corporate credit rating on Anaren Inc.

The outlook is stable.

Anaren recently announced it is pursuing a $30 million fungible add-on to its existing first-lien credit facility in order to finance the acquisition of a manufacturer of radio frequency and microwave power transistors and amplifiers, S&P said.

The agency also said it affirmed the B+ rating on the company’s $175 million first-lien term loan due 2021. The recovery rating remains at 2, indicating 70% to 90% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company’s $70 million second-lien term loan due in 2021. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

The ratings are based on an expectation that incremental EBITDA from the company’s acquisition target will enable the firm to maintain pro-forma leverage of less than 7x, the agency said.

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