...SAN FRANCISCO (S&P Global Ratings) Jan. 24, 2019--S&P Global Ratings said today that its ratings on Lam Research Corp. (###+/Stable/A-2) are not affected by the company's announced new $5 billion share repurchase program. We expect that Lam will fund the repurchases with a combination of cash on hand, free cash flow generation, and potential debt issuances. Our base-case scenario already anticipates an elevated level of share repurchases given the company's currently high cash balances, expected strong free cash flow generation (even through a weaker calendar year 2019), and repatriation of overseas cash following the passage of U.S. tax reform. Under an aggressive share repurchase scenario, in which we assume Lam undertakes $5 billion of share repurchases over the next six quarters (through the end of fiscal year 2020, which ends in June 2020), we estimate that its adjusted leverage would increase to near the 0.5x area. If the company issues debt to support the repurchases, it will not...
