Summary
This 8-K filing from Harris Corporation (now L3Harris Technologies) details two significant events for investors. Firstly, the company has established a commercial paper program allowing it to issue unsecured short-term promissory notes up to $500 million, backed by a revolving credit agreement. This program provides flexibility for short-term financing needs. Secondly, and more critically, Harris Corporation has completed the acquisition of Multimax Incorporated for $400 million. Multimax is a provider of IT and communications services to government agencies. The acquisition was funded in part by an initial issuance of $350 million in commercial paper notes, highlighting the immediate use of the new financing facility to support strategic growth initiatives. Investors should note that detailed financial statements for the acquired business and pro forma information are expected to be filed later.
Key Highlights
- 1Harris Corporation has entered into commercial paper dealer agreements with Citigroup Global Markets, Banc of America Securities, and SunTrust Capital Markets.
- 2The company can now issue unsecured short-term promissory notes up to an aggregate amount of $500,000,000.
- 3This commercial paper program is backstopped by a previously established Revolving Credit Agreement.
- 4Harris Corporation completed the acquisition of Multimax Incorporated for $400,000,000.
- 5Multimax provides IT and communications services to the Department of Defense, federal civilian agencies, and state and local governments.
- 6An initial $350,000,000 in commercial paper notes were issued to fund a portion of the Multimax acquisition.
- 7The acquired company, Multimax, was previously owned by entities affiliated with Cerberus Capital Management.