Lam Research Enters Into Accelerated Stock Buyback Agreement
April 20 2017 - 9:00AM
Lam Research Corp. (the “Company”) announced that it has entered
into accelerated stock repurchase agreements (each, an "ASR
agreement") with BNP Paribas and Citibank, N.A. (the
“Counterparties”) to repurchase an aggregate of $500 million of the
Company’s common stock (NASDAQ:LRCX). The Company will acquire its
common stock pursuant to the ASR agreements as part of its
previously announced $1.0 billion stock repurchase program (and,
with anticipated annual dividends, amounting to a $1.3 billion
capital return program). The stock repurchase program is
targeted to be completed within 12 to 18 months from the date of
its announcement on November 18, 2016. Aside from repurchases
under the ASR agreements, the remainder of the repurchases under
the Company’s repurchase program may be made, at management's
discretion, in both public market and private transactions, are
subject to certain limitations, and may include the use of
financial contracts such as additional accelerated share repurchase
agreements. Under the ASR agreements, the Company will make
an aggregate upfront payment of $500 million to the Counterparties
in exchange for approximately 2.6 million shares of the Company’s
common stock upfront. Thereafter, the daily volume-weighted
average price of the Company’s common stock less an agreed upon
discount, during the term of the ASR, will be utilized to calculate
a final repurchase price for the Company’s common stock and any
resulting settlement at the termination of the ASR, whether through
delivery of additional shares to or from the Company, or a
settlement in cash.
Caution Regarding Forward-Looking Statements:
Statements made in this press release that are not of historical
fact are forward-looking statements and are subject to the safe
harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements relate to, but
are not limited to: our plans and commitments to execute a capital
return program, including the share repurchase program (whether
through an accelerated share repurchase program/buyback agreement
or otherwise), quarterly dividends, and the terms of such programs,
dividends and/or contracts (e.g., types of transactions, dollar
values, numbers of shares, pace, timing and/or costs); our ability
to return cash or value to our stockholders; our strategic
investments; our financial performance, cash generation capability
and business opportunities; and our ability to transform
atomic-scale engineering and enable our customers to shape the
future of technology. These forward-looking statements are based on
current expectations and are subject to uncertainties and changes
in condition, significance, value and effect, our continued
financial health and ability to make share repurchases and pay
dividends, as well as the other risks and uncertainties that are
described in the documents filed or furnished by us with the
Securities and Exchange Commission, including specifically the Risk
Factors described in our annual report on Form 10-K for the fiscal
year ended June 26, 2016, and Form 10-Q for the quarter ended
December 25, 2016. These uncertainties and changes could materially
affect the forward-looking statements and cause actual results to
vary from expectations in a material way. The Company undertakes no
obligation to update the information or statements made in this
press release.
About Lam Research:Lam Research Corp.
(Nasdaq:LRCX) is a trusted global supplier of innovative wafer
fabrication equipment and services to the semiconductor industry.
Lam's broad portfolio of market-leading deposition, etch, and clean
solutions helps customers achieve success on the wafer by enabling
device features that are 1,000 times smaller than a grain of sand,
resulting in smaller, faster, more powerful, and more
power-efficient chips. Through collaboration, continuous
innovation, and delivering on commitments, Lam is transforming
atomic-scale engineering and enabling its customers to shape the
future of technology. Based in Fremont, Calif., Lam Research is a
Nasdaq-100 Index® and S&P 500® company whose common stock
trades on the Nasdaq Global Select MarketSM under the symbol LRCX.
For more information, please visit http://www.lamresearch.com.
(LRCX-F)
Lam Research Contacts:
Satya Kumar
Investor Relations
Email: Investor.relations@lamresearch.com
Phone: 510-572-1615
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