KLA-Tencor enters $750 million five-year revolver, repays term loans

By Marisa Wong

Morgantown, W.Va., Nov. 30 – KLA-Tencor Corp. entered into a credit agreement on Nov. 30 for an unsecured revolving loan facility totaling $750 million, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA, Bank of America Merrill Lynch, Citigroup Global Markets Inc., MUFG and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners; JPMorgan Chase Bank is administrative agent; Merrill Lynch, Citibank, NA, MUFG and Wells Fargo Bank, NA are syndication agents; and DBS Bank Ltd., Industrial and Commercial Bank of China Ltd., New York Branch, Bank of Nova Scotia, SunTrust Bank and U.S. Bank NA are documentation agents.

The revolving loan facility may be increased by a total of up to $250 million.

At closing, the company had $250 million of outstanding borrowings under the revolver. The company used the proceeds, along with cash on hand, to repay in full its credit agreement dated Nov. 14, 2014. The existing credit agreement had $250 million of term loans outstanding as of Nov. 30. The revolving commitments under the prior agreement were terminated upon entry into the new agreement.

The new facility terminates on Nov. 30, 2022.

Unused commitments will be subject to a commitment fee ranging from 10 basis points to 25 bps, depending on the company’s credit rating.

Borrowings bear interest at Libor plus an applicable rate ranging from 100 bps to 175 bps, depending on the company’s credit rating.

The credit agreement contains financial covenants that require the maintenance of a maximum leverage ratio and a minimum interest coverage ratio.

Based in Milpitas, Calif., KLA-Tencor is a supplier of process control and yield management services for the semiconductor and related nanoelectronics industries.

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