Moody’s rates Cohu, loan B1

Moody's Investors Service said it assigned ratings to Cohu, Inc., including a corporate family rating of B1 and probability of default rating of B1-PD.

The agency also assigned a B1 rating to the company’s senior secured term loan B and a speculative grade liquidity rating of SGL-2.

The outlook is stable.

Cohu intends to use the proceeds of the term loan and balance sheet cash to acquire Xcerra Corp.

“The B1 CFR reflects Cohu's consistent free cash flow (FCF) generation due to the modest capital intensity and large base of consumable products, accounting for nearly half of revenues, which produces a base of recurring revenues that varies with the level of global semiconductor production volume,” the agency said in a news release.

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