Lam Research Corp. 'BBB' Rating Affirmed On Proposed Debt Issuance; Outlook Stable; New Debt Rated

U.S. semiconductor capital equipment manufacturer Lam Research Corp. will issue an approximately $2.4 billion proposed debt financing to partially fund its previously announced acquisition of KLA-Tencor Corp. KLA-Tencor is a leading supplier of process control and yield management solutions for the semiconductor industry. The transaction is subject to regulatory approvals, and we expect it to close by the third quarter of 2016. We are affirming our ratings on Lam Research, including the 'BBB' corporate credit rating. We are also assigning our 'BBB' issue-level rating to the company's proposed $2.4 billion senior unsecured notes and our 'BBB' issue-level rating to the $1.53 billion senior unsecured term loan, which consists of a $1.005 billion three-year tranche and a $525 million five-year tranche.

...+ U.S. semiconductor capital equipment manufacturer Lam Research Corp. will issue an approximately $2.4 billion proposed debt financing to partially fund its previously announced acquisition of KLA-Tencor Corp. KLA-Tencor is a leading supplier of process control and yield management solutions for the semiconductor industry. The transaction is subject to regulatory approvals, and we expect it to close by the third quarter of 2016. + We are affirming our ratings on Lam Research, including the '###' corporate credit rating. + We are also assigning our '###' issue-level rating to the company's proposed $2.4 billion senior unsecured notes and our '###' issue-level rating to the $1.53 billion senior unsecured term loan, which consists of a $1.005 billion three-year tranche and a $525 million five-year tranche. + Our stable rating outlook on Lam Research reflects our expectation that the company will be able to successfully integrate the acquisition of KLA-Tencor, achieve the planned $250 million...

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