Summary
KLA-Tencor Corporation (KLAC) announced on November 17, 2014, the successful closing of a new $1.25 billion five-year senior unsecured revolving credit and term loan facility. This facility, effective November 14, 2014, consists of $750 million in amortizing term loans and a $500 million revolving credit commitment, providing the company with significant financial flexibility and resources. This new credit facility matures on November 14, 2019, and offers access to funds at interest rates tied to LIBOR plus a margin ranging from 1.0% to 1.75%, dependent on KLA-Tencor's credit ratings. The company also incurred origination fees and will pay annual commitment fees on the undrawn portion of the revolving facility. This move is a strategic step to ensure continued access to capital for operational needs, potential investments, or strategic initiatives.
Key Highlights
- 1KLA-Tencor secured a new $1.25 billion senior unsecured revolving credit and term loan facility.
- 2The facility has a maturity date of November 14, 2019, providing a five-year borrowing term.
- 3The credit facility comprises $750 million in term loans and $500 million in revolving credit commitments.
- 4Interest rates are based on LIBOR plus a spread of 1.0% to 1.75%, varying with the company's credit ratings.
- 5The company will pay origination fees and annual commitment fees on the undrawn revolving credit balance.
- 6The credit agreement was executed on November 14, 2014, with JPMorgan Chase Bank, N.A. as Administrative Agent.