8-KOther EventsExhibits & Filings

KLA CORP 8-K Report, Corporate Update (Apr 30, 2008)

Filed April 30, 2008For Securities:KLAC

Summary

KLA-Tencor Corporation (KLAC) announced on April 29, 2008, the successful pricing of a significant debt offering. The company will issue $750 million in aggregate principal amount of 6.90% senior notes, which are due to mature on May 1, 2018. This offering was conducted under the company's existing shelf registration statement on Form S-3, which was declared effective on April 28, 2008. This debt issuance provides KLA-Tencor with substantial capital, likely intended for general corporate purposes, potential acquisitions, or to refinance existing debt. The fixed 6.90% interest rate on these senior notes offers a predictable cost of borrowing for the next decade, which can be advantageous in managing future financial obligations. Investors should note this as a material financial event that impacts the company's capital structure.

Key Highlights

  • 1KLA-Tencor priced a $750 million offering of senior notes.
  • 2The notes carry a fixed interest rate of 6.90%.
  • 3The maturity date for these notes is May 1, 2018.
  • 4The offering was made under a shelf registration statement (Form S-3).
  • 5The press release announcing the pricing was issued on April 29, 2008.
  • 6The funds are expected to be used for general corporate purposes.
  • 7This event signifies a material change to the company's debt structure and financing.

Frequently Asked Questions

This 8-K filing is primarily to report on the pricing of KLA-Tencor's offering of $750 million in senior notes due 2018, as announced in their press release dated April 29, 2008. It fulfills disclosure requirements for material corporate events.

The company is issuing $750 million in aggregate principal amount of senior notes with a coupon rate of 6.90% per annum. These notes will mature on May 1, 2018.

This offering significantly increases KLA-Tencor's long-term debt. It provides the company with substantial capital for its operations, investments, or other strategic initiatives, while also establishing a fixed interest expense for the next ten years.

The offering was conducted pursuant to KLA-Tencor's shelf registration statement on Form S-3, which was filed with the SEC and declared effective shortly before the pricing of the notes.