Fitch Rates International Rectifier's Proposed Convertible Notes 'B+'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has assigned a 'B+' rating to International Rectifier Corp.'s (IRF IRF Interferon Regulatory Factor IRF International Religious Freedom IRF Institut for Rationel Farmakoterapi (German) IRF Inherited Rights Filter (Novell) IRF Inherited Rights Filter ) proposed $650 million convertible subordinated notes due 2013. This rating incorporates the potential exercise of a $100 million over-allotment option by the initial purchasers of the notes. IRF's Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) is 'BB-' and Fitch currently rates the bank credit facility at 'BB'. The Rating Outlook remains Positive. While the proposed offering will result in total debt increasing to more than $1 billion, the ratings and Positive Outlook incorporate Fitch's expectations that IRF will use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to redeem the existing $550 million convertible subordinated notes, as well as fund redemption premiums, issuance-related transaction costs, and net costs associated with convertible note hedge and warrant transactions. The ratings and Outlook continue to reflect IRF's consistently positive (albeit modest) annual free cash flow, leading positions in several power management markets, strong and focused intellectual property (IP) portfolio, diversified end-market exposure and relatively conservative financial strategy, including a solid liquidity position. The Outlook also reflects Fitch's expectations that IRF's richer sales mix, anticipated divestiture of its nonaligned non·a·ligned adj. Not allied with any other nation or bloc; neutral: A group of 20 nonaligned nations urged a treaty to ban space weapons. products segment (anticipated to be completed by mid-2006) and positive longer term power management growth trends will translate into more consistent operating and financial performance for IRF. Ratings concerns center on IRF's significant ongoing capital expenditures and investments in research and development (R&D), representing approximately 20%-25% of revenues, comparatively high debt levels (even prior to this issuance), the small size relative to major competitors (several of which are large integrated semiconductor providers), and exposure to the cyclical demand patterns and volatile cash flows associated with the semiconductor industry. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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