Actionable Opportunities in Special Situations: Spinoffs, Bankruptcy, Restructurings


KLA-Tencor Corp (KLAC) pursuing leveraged recapitalization ($16.50 special dividend) and expanded buyback program

KLA-Tencor Corporation (NASDAQ: KLAC) announced yesterday it will pursue a leveraged recapitalization featuring a $2.75bn special dividend ($16.50 per share or 23% of the stock price as of 10/24) and an expanded stock repurchase program of $250mm in addition to the $1bn authorization initiated in July. Buyback is expected to be completed in next 12-18 months.

The intended special cash dividend of $2.75 billion in the aggregate will be funded in part with a portion of the cash on the Company’s balance sheet, and in part with incremental debt. To fund the debt financed portion of the special cash dividend, KLA-Tencor intends to add up to $2.5 billion of incremental debt, consisting of a combination of investment grade senior notes and a pre-payable term loan facility, subject to market conditions.

Source: Press Release

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