New Issue: KLA sells $750 million of notes, including new notes due 2034, add-on due 2052

By Wendy Van Sickle

Columbus, Ohio, Jan. 30 – KLA Corp. priced $750 million of senior notes (A2/A-/A) in two parts, including an add-on, on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

In the first tranche, the issuer sold $500 million of 4.7% 10-year senior notes at 99.393 to yield 4.777%, or a spread over Treasuries of 72 basis points.

The issuer also priced a $250 million add-on to its 4.95% senior notes due July 15, 2052 at 97.861 to yield 5.093%, or a spread over Treasuries of 80 bps.

The 2052 notes will constitute a further issuance of and form a single series with KLA’s $1.2 billion of 4.95% notes due 2052 issued on June 23, 2022, lifting the total amount of the issue to $1.45 billion.

Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

The company intends to use proceeds from the offering for general corporate purposes, including the repayment of outstanding debt at or prior to maturity and to repurchase shares of common stock under previously announced share repurchase programs.

KLA develops equipment and provides services for the electronics industry. The company is based in Milpitas, Calif.

Issuer:	KLA Corp.
Amount:	$750 million
Issue:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
Co-managers:	Academy Securities, Inc., ICBC Standard Bank plc, Scotia Capital (USA) Inc., Truist Securities, Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
Trustee:	U.S. Bank Trust Co., NA
Counsel to issuer:	Latham & Watkins LLP
Counsel to underwriters:	Cravath, Swaine & Moore LLP
Trade date:	Jan. 30
Settlement date:	Feb. 1
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: A
Distribution:	SEC registered
10-year notes
Amount:	$500 million
Maturity:	Feb. 1, 2034
Coupon:	4.7%
Price:	99.393
Yield:	4.777%
Spread:	Treasuries plus 72 bps
Call features:	Make-whole call before Nov. 1, 2033 at Treasuries plus 15 bps; thereafter at par
Change-of-control put:	101
Cusip:	482480AP5
30-year notes
Amount:	$250 million add-on
Maturity:	July 15, 2052
Coupon:	4.95%
Price:	97.861
Yield:	5.093%
Spread:	Treasuries plus 80 bps
Call features:	Make-whole call before Jan. 15, 2052 at Treasuries plus 25 bps; thereafter at par
Change-of-control put:	101
Cusip:	482480AM2
Total amount:	$1.45 billion, including $1.2 billion issued on June 23, 2022

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