Fitch rates MKS Instruments BB+

Fitch Ratings said it assigned a first-time BB+ long-term issuer default rating to MKS Instruments, Inc. In addition, the agency gave BBB-/RR1 to the senior secured term loan rating to the company's planned issuance.

MKS plans to issue a $500 million senior secured revolving credit facility, to be undrawn at close, a $4.3 billion senior secured term loan, and a $1 billion U.S. dollar-equivalent euro senior secured term loan with proceeds, along with a $1.6 billion equity issuance and balance sheet cash, to fund the $6.5 billion acquisition of Atotech Ltd.

“Fitch believes the acquisition of Atotech accelerates efforts to reduce the high levels of cyclicality experienced by MKS historically, as exposure to semiconductor capital equipment demand will decline to 39% of pro forma revenue from 59%,” the agency said in a press release.

The outlook is stable.

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