Summary
Lam Research Corporation (LRCX) has filed an 8-K report detailing a significant financial event on June 19, 2006. The company's indirect wholly-owned subsidiary, Lam Research International SARL (LRI), entered into a $350 million credit facility. Lam Research Corporation (LRC) provided a guarantee for this facility. This new credit agreement allows LRI to borrow up to $350 million, with a maturity of five years and interest at LIBOR plus a spread. The initial spread is set at 0.10%.
Key Highlights
- 1LRI entered into a $350 million Credit Agreement, maturing in five years.
- 2LRCX's subsidiary LRI is the borrower, and LRC is the guarantor of the debt.
- 3The loan bears interest at LIBOR plus a spread ranging from 0.10% to 0.50%, based on leverage.
- 4LRI borrowed the full $350 million on June 19, 2006.
- 5Proceeds from the credit facility are being used to repatriate $350 million of foreign earnings under the American Jobs Creation Act (AJCA).
- 6This repatriation is in addition to $150 million previously announced.
- 7LRCX expects to record approximately $16 million in tax expense for this additional repatriation in the June 2006 quarter.