Summary
KLA Corporation (KLAC) announced the issuance of $1.2 billion in aggregate principal amount of senior notes, divided into $800 million of 4.100% Senior Notes due 2029 and $400 million of 5.000% Senior Notes due 2049. This offering was conducted through a public offering under KLA's existing registration statement. The company intends to use the net proceeds from this issuance for partial refinancing of existing debt, including borrowings under its credit agreement, to repurchase shares, and for general corporate purposes. The issuance of these notes represents a material definitive agreement, creating a direct financial obligation for the company.
Key Highlights
- 1KLA Corp. issued $800 million in 4.100% Senior Notes due 2029 and $400 million in 5.000% Senior Notes due 2049, totaling $1.2 billion.
- 2The proceeds are earmarked for partially refinancing existing debt, share repurchases, and general corporate purposes.
- 3The 2029 Notes mature on March 15, 2029, while the 2049 Notes mature on March 15, 2049.
- 4Interest on both note series is payable semi-annually on March 15 and September 15.
- 5KLA has the option to redeem the notes, under certain conditions, including a 'Par Call' provision at specified dates prior to maturity.
- 6The notes are unsecured and rank equally with other unsecured senior indebtedness of KLA.
- 7The company may be required to repurchase the notes upon a change of control triggering event.
Frequently Asked Questions
KLA Corp. issued a total of $1.2 billion in aggregate principal amount of senior notes, comprised of $800 million of 4.100% Senior Notes due 2029 and $400 million of 5.000% Senior Notes due 2049.
The company plans to use the net proceeds to partially refinance its existing debt, including borrowings under its credit agreement, to repurchase shares of its common stock, and for general corporate purposes.
The notes issued are unsecured and will rank equally in right of payment with all of KLA's other unsecured senior indebtedness.
The 4.100% Senior Notes mature on March 15, 2029, and the 5.000% Senior Notes mature on March 15, 2049.