8-KOther Events

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Corporate Update (Jul 16, 2007)

Filed July 16, 2007For Securities:LHX

Summary

L3Harris Technologies (formerly Harris Corporation) announced on July 12, 2007, its intention to redeem all of its outstanding 3.5% Convertible Debentures due 2022. This redemption, scheduled for August 20, 2007, involves paying the principal amount plus accrued interest. As of the announcement date, approximately $149 million in aggregate principal amount of these debentures were outstanding. Importantly for investors holding these debentures, they have the option to convert them into Harris common stock prior to the redemption date. The conversion rate is set at 44.2404 shares per $1,000 principal amount, implying a conversion price of approximately $22.60 per share. Given the common stock's market price of $57.40 on July 13, 2007, conversion appears to be a financially attractive option for debenture holders.

Key Highlights

  • 1Harris Corporation will redeem all outstanding 3.5% Convertible Debentures due 2022.
  • 2The redemption date is set for August 20, 2007.
  • 3The redemption price will be 100% of the principal amount plus accrued interest.
  • 4Approximately $149 million in principal amount of debentures were outstanding as of July 12, 2007.
  • 5Debenture holders have the option to convert their debentures into Harris common stock until August 17, 2007.
  • 6The conversion rate is 44.2404 shares of common stock per $1,000 principal amount.
  • 7The effective conversion price is approximately $22.60 per share, significantly below the market price of $57.40 on July 13, 2007.

Frequently Asked Questions

Harris Corporation is redeeming all of its outstanding 3.5% Convertible Debentures due 2022. This means the company plans to pay off the principal and any accrued interest on these debentures.

The debentures will be redeemed on August 20, 2007. The redemption price is 100% of the principal amount of the debentures, plus any interest that has accrued up to, but not including, the redemption date.

Yes, debenture holders can choose to convert their debentures into shares of Harris Corporation's common stock. This conversion must be done on or before August 17, 2007, the business day immediately preceding the redemption date.

The conversion rate is 44.2404 shares of common stock for every $1,000 principal amount of debentures. This translates to an effective conversion price of approximately $22.60 per share. Holders should refer to the Indenture for full terms and conditions.