TTM Technologies plans to issue $1.1 billion of new debt to replace own debt, Viasystems’ debt

By Lisa Kerner

Charlotte, N.C., Jan. 14 – TTM Technologies, Inc. has a strong balance sheet, is carrying a “fair amount of cash” and is using cash flow and other funds to pay down debt, according to executive vice president and chief financial officer Todd B. Schull.

Schull made his comments during a presentation on Wednesday at the 17th Annual Needham Growth Conference in New York.

The CFO also discussed the company’s plans to acquire Viasystems Group, Inc. in a cash and stock transaction valued at about $927 million, including the assumption of debt.

With the proposed acquisition, Schull said TTM “will be issuing about $1.1 billion of new debt that will replace all of our existing debt, all of Viasystems’ existing debt, and incrementally, will add about $200 million of debt to the combined balance sheet.”

TTM announced the execution of a definitive agreement with Viasystems, a St. Louis-based provider of complex multi-layer printed circuit boards and electro-mechanical products, in September.

Going forward, TTM’s focus will be on driving cash flow to deleverage the balance sheet and get down to a more comfortable leverage rate of about 2% to 2.5% debt to EBITDA, according to Schull.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer.

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