Lam Research inks $300 million five-year revolver via JPMorgan

By Toni Weeks

San Luis Obispo, Calif., March 13 - Lam Research Corp. arranged a $300 million revolving unsecured credit facility with JPMorgan Chase Bank, NA as administrative agent on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which matures March 12, 2019, has an accordion feature for an increase of up to $200 million and sublimits for the issuance of letters of credit and for borrowings in some foreign currencies.

Loans bear interest at an interest rate equal to Libor plus 90 basis points to 150 bps. There is also a facility fee of 10 bps to 25 bps. Both are based on the company's non-credit enhanced, senior unsecured long-term debt ratings.

The credit agreement requires the company to maintain a consolidated debt to capitalization ratio of no more than 0.50 to 1:00 and liquidity of no less than $1 billion.

Proceeds may be used for general corporate purposes.

Bank of America, NA is the syndication agent. BNP Paribas, Barclays, Citibank, NA and Deutsche Bank Securities Inc. are the co-documentation agents. J.P. Morgan Securities LLC and BofA Merrill Lynch are joint bookrunners and joint lead arrangers.

As of March 12, there was no amount outstanding under the facility, the filing noted.

Lam Research is a Fremont, Calif.-based semiconductor equipment company.

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