KLA-Tencor Corp.'s Senior Unsecured Notes Rated 'BBB'

SAN FRANCISCO (S&P Global Ratings) March 13, 2019--S&P Global Ratings today assigned its 'BBB' issue-level rating to Milpitas, Calif.-based semiconductor equipment manufacturer KLA-Tencor Corp.'s senior unsecured notes. The company will use the proceeds from these notes to partially refinance its existing debt, including borrowings under its revolver, repurchase shares, and for general corporate purposes. We rate the new notes at the same level as our issuer credit rating on the company. All of our other ratings on KLA remain unchanged. KLA may use the proceeds from these notes to partially repay the roughly $900 million outstanding under its revolver, which it used to fund its $3.2 billion purchase of Orbotech Ltd. in February 2019. KLA funded the acquisition with a

...SAN FRANCISCO (S&P Global Ratings) March 13, 2019--S&P Global Ratings today assigned its '###' issue-level rating to Milpitas, Calif.-based semiconductor equipment manufacturer KLA-Tencor Corp.'s senior unsecured notes. The company will use the proceeds from these notes to partially refinance its existing debt, including borrowings under its revolver, repurchase shares, and for general corporate purposes. We rate the new notes at the same level as our issuer credit rating on the company. All of our other ratings on KLA remain unchanged. KLA may use the proceeds from these notes to partially repay the roughly $900 million outstanding under its revolver, which it used to fund its $3.2 billion purchase of Orbotech Ltd. in February 2019. KLA funded the acquisition with a combination of $1.3 billion in equity and $1.9 billion in cash. We estimate that the company's pro forma leverage, adjusted for surplus cash, is under 1x and expect its credit metrics to remain well below our downside trigger...

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