KLA closed an inaugural $1.5 billion sustainability-linked revolving credit facility. The new five-year facility reinforces the company’s commitment to its environmental, social, and governance (ESG) programs and goals.

KLA refinanced and upsized its existing $1 billion credit facility which was set to mature in November of 2023. During the five-year term of the new sustainability-linked facility, KLA will receive pricing adjustments based on its performance against two sustainability performance targets. KLA’s progress will be measured on achieving its goals of increased usage of renewable electricity within the company’s operations and reduction in Scope 1 & Scope 2 CO2 emissions. JPMorgan Chase is administrative agent and lead arranger on the transaction, and other joint bookrunners include Bank of America Securities, Citibank and Wells Fargo Securities.

“This increased credit facility will provide KLA with additional financial flexibility to pursue its growth initiatives or capital returns strategies,” Bren Higgins, executive vice president and CFO of KLA, said. “In addition, having a new sustainability-linked credit facility demonstrates KLA’s commitment to couple its financial obligations to its environmental goals to bring additional long-term value to stakeholders. From carbon-free power sourcing and comprehensive recycling programs to supplier diversity and socially-conscious and inclusive employee resource groups, KLA is integrating its ESG philosophy into its business operations globally.”

KLA has set a goal to use 100% renewable electricity across its global operations by 2030. This objective formalizes the company’s commitment to support the transition to a clean energy economy by setting greenhouse gas emission reduction targets and reporting climate-related information to stakeholders, in alignment with the recommendations of the task force on climate-related financial disclosures. The company’s renewable electricity goal will help to set the company on a projected path to achieve a 46% cumulative reduction in combined Scope 1 and Scope 2 emissions by 2030 from its 2019 baseline