Moody's rates Flex notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Flex Ltd.'s proposed senior unsecured notes offering.

The proceeds of the new notes will be used to complete the tender offer and redemption of the $500 million of notes due February 2020, including the payment of related expenses, Moody's said.

The remaining proceeds will be used for general corporate purposes, including the prepayment of other outstanding debt, the agency said.

All of its other ratings are unchanged.

The rating reflects Flex's scale as the largest North American electronics manufacturing services (EMS) provider, improved business diversification, cash generating capacity and an expectation that the company will maintain a leading position in the electronics manufacturing services industry, Moody's said.

Flex has a global manufacturing footprint with facilities located in low labor cost regions, but is also growing vertically integrated operations and expanding its end-to-end product life cycle capabilities across a growing array of industries, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.