In today’s press release below, Lam announced that it has closed a $1.5 billion sustainability-linked revolving credit facility, further embedding environmental, social, and governance (ESG) into our corporate purpose and business goals. Over the credit facility term, Lam will receive a pricing adjustment depending on the company’s performance against two metrics: annual energy savings and maintaining a high standard of employee safety.
Lam Research Reinforces its ESG Goals with New $1.5 Billion Sustainability-Linked Revolving Credit Facility
FREMONT, Calif., June 21, 2021 (GLOBE NEWSWIRE) – Lam Research Corp. (Nasdaq: LRCX) today announced the recent closing of an inaugural $1.5 billion sustainability-linked credit facility, demonstrating the importance of the company’s environmental, social, and governance (ESG) goals. Over the credit facility term, Lam will receive a pricing adjustment if the company is above or below performance targets around annual energy savings and maintaining its high standard of employee safety.
“Lam strives to incorporate ESG into everything we do – from our operations and workplace practices, to how we source our materials and design our products,” said Doug Bettinger, executive vice president and chief financial officer of Lam Research. “The new sustainability-linked credit facility is part of our overall management focus on financial performance while integrating ESG principles into day-to-day operations. We believe this will also add long-term value for Lam’s shareholders.”
Lam refinanced and upsized its existing $1.25 billion facility maturing October 2022 with this new five-year $1.5 billion sustainability-linked facility. JPMorgan Chase is the administrative agent and BNP Paribas is acting as the sustainability structuring agent. Joint bookrunners and joint lead arrangers on this transaction include JPMorgan Chase, Goldman Sachs Bank USA, Barclays Bank PLC, Citibank, N.A., BNP Paribas Securities Corp., and BofA Securities, Inc.
Energy use is a primary driver of Lam’s greenhouse gas (GHG) emissions and a key focus for reducing the company’s environmental and climate impact. Lam directly addresses energy use and GHG emissions through a multitude of energy efficiency projects, and the company has achieved energy savings for multiple years, with plans for future savings by 2025.
Employee safety is critical, and Lam seeks to provide a safe, injury free workplace throughout its operations. The company has consistently achieved below average industry recordable incident rates and continues to invest in education, awareness, monitoring, and prevention programs to ensure that employees stay safe every day.