U.S. semiconductor capital equipment manufacturer Lam Research Corp. announced that it will acquire KLA-Tencor Corp., a leading supplier of process control and yield management solutions for the semiconductor industry, in a cash and stock transaction totaling approximately $10.4 billion. We expect KLA-Tencor to become a wholly-owned subsidiary of Lam Research upon closing. The transaction is subject to shareholder and regulatory approvals and expected to close in mid-2016. We expect Lam Research to fund the transaction using approximately $1.9 billion of cash on hand, about $3.9 billion of debt, and about $5.5 billion of equity. We are affirming our 'BBB' corporate credit rating on Lam Research. We are also affirming our 'BBB' issue-level ratings on Lam Research's unsecured senior and convertible
