KLA Prices Senior Notes Offering

About this update from Kla Corporation

[{"type":"text","content":"MILPITAS, Calif., Feb. 19, 2020 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced it has entered into a firm commitment underwriting agreement on Feb. 19, 2020 to sell $750 million aggregate principal amount of its 3.300% Senior Notes due 2050 (the \"notes\") under an automatic shelf registration statement on file with the Securities and Exchange Commission (the \"SEC\"). The offering is expected to settle on Feb. 28, 2020, subject to customary closing conditions.\nLogo - https://mma.prnewswire.com/media/806571/KLA_Corporation_Logo.jpg \nThe notes will bear interest at a rate of 3.300% per year. Interest on the notes will be payable semi-annually on Mar. 1 and Sept. 1 of each year, commencing on Sept. 1, 2020.\nKLA estimates that the net proceeds from the sale of the notes will be approximately $741.2 million after deducting the estimated underwriting discounts and estimated offering expenses. KLA intends to use approximately $523.8 million of the net proceeds of this offering to redeem $500.0 million in aggregate principal amount of its 4.125% senior notes due 2021, and the remaining net proceeds for general corporate purposes, which may include repayment of amounts outstanding under KLA's credit agreement. \nCitigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., MUFG Securities Americas Inc., and SunTrust Robinson Humphrey, Inc. 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 should read the effective registration statement (including the preliminary prospectus supplement and accompanying base prospectus) for more complete information about KLA and this offering. You may obtain copies of these documents free of charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from Citigroup Global Markets Inc. at: Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146; [email protected], J.P. Morgan Securities LLC at: 383 Madison Avenue, New York, NY 10179, Attn: Investment Grade Syndicate Desk-3rd Floor or by calli...

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