KLA to issue three series of notes for tender offer, share buyback

Chicago, June 21 – KLA Corp. announced it will issue three series of senior notes (A2/A-/A-) in a 424B5 filing with the Securities and Exchange Commission on Tuesday morning.

The notes will be callable with make-whole premiums until set par call dates.

Should there be a change of control, KLA will offer to repurchase the notes at 101.

BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the sale.

Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities LLC are also listed as bookrunners.

U.S. Bank Trust Co., NA is the trustee.

Latham & Watkins LLP is advising the issuer. Cravath, Swaine & Moore LLP is working as counsel to the underwriters.

The company will use a portion of the proceeds to fund a tender offer for its 2024 notes. The remaining proceeds, with cash on hand and/or borrowings under the company’s revolving credit facility, will be used to repurchase $3 billion of the company’s common stock.

KLA develops and manufactures process-control and process-enabling solutions for electronic devices. The company is based in Milpitas, Calif.

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