Published on 2/19/2020 in the Prospect News Investment Grade Daily.
New Issue: KLA sells $750 million 3.3% 30-year notes at Treasuries plus 130 bps
By Cristal Cody
Tupelo, Miss., Feb. 19 – KLA Corp. priced $750 million of 3.3% 30-year senior notes (Baa1/BBB+/BBB+) on Wednesday at a spread of Treasuries plus 130 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were talked to price at the Treasuries plus 155 bps area.
The issue priced at 99.962 to yield 3.302%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities, Inc., MUFG and SunTrust Robinson Humphrey Inc. were the bookrunners.
Proceeds will be used to redeem $500 million of the company’s 4.125% senior notes due 2021 and for general corporate purposes.
KLA, previously known as KLA-Tencor, is a Milpitas, Calif.-based company that develops equipment and services for the electronics industry.
| Issuer: | KLA Corp.
|
| Amount: | $750 million
|
| Maturity: | March 1, 2050
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities, Inc., MUFG and SunTrust Robinson Humphrey Inc.
|
| Senior co-managers: | Academy Securities, Inc., ICBC Standard Bank plc, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Coupon: | 3.3%
|
| Price: | 99.962
|
| Yield: | 3.302%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before Sept. 1, 2049 at Treasuries plus 20 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 155 bps area
|
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