KLA Corporation Prices Senior Notes Offering

About this update from Kla Corporation

[{"type":"text","content":"MILPITAS, Calif., June 21, 2022 /PRNewswire/ -- KLA Corporation (\"KLA\") (NASDAQ: KLAC) today announced it has entered into a firm commitment underwriting agreement on June 21, 2022 to sell $1,000,000,000 aggregate principal amount of its 4.650% Senior Notes due 2032 (the \"2032 Notes\"), $1,200,000,000 aggregate principal amount of its 4.950% Senior Notes due 2052 (the \"2052 Notes\"), and $800,000,000 aggregate principal amount of its 5.250% Senior Notes due 2062 (the \"2062 Notes\" and, together with the 2032 Notes and the 2052 Notes, the \"Notes\") pursuant to KLA's registration statement on Form S-3 (File No. 333-265497), including the base prospectus contained therein, filed with the Securities and Exchange Commission (the \"SEC\") under the Securities Act of 1933, as amended (the \"Securities Act\"), and a related preliminary prospectus supplement. The offering is expected to settle on June 23, 2022, subject to customary closing conditions.\nThe 2032 Notes will bear interest at a rate of 4.650% per year, the 2052 Notes will bear interest at a rate of 4.950% per year, and the 2062 Notes will bear interest at a rate of 5.250% per year. Interest on each series of Notes will be payable semi-annually on January 15 and July 15 of each year, commencing on January 15, 2023.\nKLA estimates that the net proceeds of the offering of Notes, after deducting underwriting discounts and other estimated offering expenses, will be approximately $2.96 billion. KLA expects to use a portion of the net proceeds from the Notes offering to fund KLA's concurrent tender offer for its 4.650% Senior Notes due 2024. KLA intends to use the remainder of the net proceeds from the Notes offering, together with cash on hand and/or borrowings under its revolving credit facility, to repurchase $3.0 billion in shares of common stock pursuant to KLA's share repurchase programs following the closing of the Notes offering.\nBofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers of the offering.\nKLA has filed an effective registration statement (including a preliminary prospectus supplement and accompanying base prospectus) with the SEC for the offering to which this communication relates. Before you invest, you...

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