June 3, 2019 / 6:58 AM / 22 days ago

Infineon expects to keep investment grade rating after Cypress deal

FRANKFURT, June 3 (Reuters) - Infineon Technologies expects to keep its investment grade credit rating after its 9 billion euro ($10 billion) agreed acquisition of U.S. Cypress Semiconductor, Chief Financial Officer Sven Schneider said on Monday.

Infineon’s leverage ratio, measured as debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) will, however, exceed a target of two times before returning to that level in late 2022, Schneider told analysts.

Asked about how the deal came about, Chief Marketing Officer Helmut Gassel said discussions had been triggered by interest expressed in Cypress by another party. Infineon was invited to take part in the process around five weeks ago, he said.

($1 = 0.8958 euros)

Reporting by Douglas Busvine Editing by Thomas Seythal

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