By Aleesia Forni
Virginia Beach, Oct. 30 – KLA-Tencor Corp. priced $2.5 billion of senior notes (Baa2/BBB/) in five tranches, according to sources away from the trade.
A $250 million tranche of 2.375% notes due 2017 priced at 99.94 to yield 2.396%, or Treasuries plus 150 basis points.
There was also $250 million of 3.375% notes due 2019 sold with a spread of Treasuries plus 180 bps.
Pricing was at 99.991 to yield 3.377%.
A $500 million 4.125% tranche of seven-year notes sold at 99.983 to yield 4.128%, or Treasuries plus 212.5 bps.
The company also priced $1.25 billion of 4.65% 10-year notes sold with a spread of Treasuries plus 237.5 bps.
The notes priced at 99.748 to yield 4.682%.
There was also $250 million of 5.65% 20-year bonds priced at 99.764 to yield 5.67%, or Treasuries plus 262.5 bps.
J.P. Morgan Securities LLC was the bookrunner.
Proceeds will be used to fund a special dividend to stockholders and for other general corporate purposes.
The Milpitas, Calif.-based company is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries.
| Issuer: | KLA-Tencor Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Trade date: | Oct. 30
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2017
|
| Coupon: | 2.375%
|
| Price: | 99.94
|
| Yield: | 2.396%
|
| Spread: | Treasuries plus 150 bps
|
| Price talk: | Treasuries plus 162.5 bps area, tightened from Treasuries plus 170 bps area
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2019
|
| Coupon: | 3.375%
|
| Price: | 99.991
|
| Yield: | 3.377%
|
| Spread: | Treasuries plus 180 bps
|
| Price talk: | Treasuries plus 190 bps area, tightened from Treasuries plus 200 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 4.125%
|
| Price: | 99.983
|
| Yield: | 4.128%
|
| Spread: | Treasuries plus 212.5 bps
|
| Price talk: | Treasuries plus 225 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 1, 2024
|
| Coupon: | 4.65%
|
| Price: | 99.748
|
| Yield: | 4.682%
|
| Spread: | Treasuries plus 237.5 bps
|
| Price talk: | Treasuries plus 250 bps area
|
|
|
| 20-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2034
|
| Coupon: | 5.65%
|
| Price: | 99.764
|
| Yield: | 5.67%
|
| Spread: | Treasuries plus 262.5 bps
|
| Price talk: | Treasuries plus 275 bps area, tightened from Treasuries plus 280 bps area
|
|
|
|
|
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