Lam Research Corp.'s Senior Unsecured Notes Rated 'BBB+'

SAN FRANCISCO (S&P Global Ratings) Feb. 25, 2019--S&P Global Ratings today assigned its 'BBB+' issue-level rating to Fremont, Calif.-based semiconductor equipment manufacturer Lam Research Corp.'s senior unsecured notes. The company will use the proceeds from these notes for general corporate purposes, including to repurchase common stock and repay debt. We rate the new notes at the same level as our issuer credit rating on the company. All of our other ratings on Lam remain unchanged. This debt issuance comes on the heels of the company's recently announced $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 proceeds from the proposed debt issuance. Our base-case

...SAN FRANCISCO (S&P Global Ratings) Feb. 25, 2019--S&P Global Ratings today assigned its '###+' issue-level rating to Fremont, Calif.-based semiconductor equipment manufacturer Lam Research Corp.'s senior unsecured notes. The company will use the proceeds from these notes for general corporate purposes, including to repurchase common stock and repay debt. We rate the new notes at the same level as our issuer credit rating on the company. All of our other ratings on Lam remain unchanged. This debt issuance comes on the heels of the company's recently announced $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 proceeds from the proposed debt issuance. Our base-case scenario 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...

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