KLA-Tencor Declares Special Cash Dividend Of $16.50/shr; Updates Q2 Profit View

(RTTNews) - KLA-Tencor Corp. (KLAC) announced that its board has declared a special cash dividend of $16.50 per share on its common stock payable on December 9, 2014 to KLA-Tencor stockholders of record as of the close of business on December 1, 2014. KLA-Tencor's Board has also authorized the redemption of $750.0 million outstanding principal amount of KLA-Tencor's 6.900% Senior Notes due 2018.

Of the $16.50 per share distribution, KLA-Tencor currently expects between $11.50 to $12.50 per share to be characterized as a dividend, and the remaining amount of the distribution to be characterized as a return of capital.

The company also revised its outlook for the second quarter of fiscal year 2015 following the closing of its registered offering of approximately $2.5 billion aggregate principal amount of its Senior Notes.

The revised outlook for the second quarter of fiscal year 2015 also reflects the impact of the planned redemption of $750.0 million outstanding principal amount of KLA-Tencor's 6.900% Senior Notes due 2018 , borrowings of $750.0 million under term loans provided under a credit agreement and a $500.0 million unfunded revolving credit facility.

For the second quarter of fiscal year 2015 ending December 31, 2014, GAAP results is expected to be in the range of loss $0.19 per share - profit $0.05 per share. Non-GAAP earnings is expected to be in the range of $0.37 to $0.61 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $0.58 per share for the second-quarter. Analysts' estimates typically exclude special items.