Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced on December 4, 2007, the closing of a $400 million aggregate principal amount offering of its 5.95% Notes due 2017. The net proceeds to the company from this issuance, after deducting underwriting discounts and expenses, were approximately $386 million. These notes were issued under an automatic shelf registration statement and are governed by an indenture with The Bank of New York as trustee. The issuance of these senior notes represents a material definitive agreement that adds to the company's long-term debt. Investors should note the interest rate of 5.95% and the maturity date of December 1, 2017. The notes are subject to redemption at the company's option at a "make whole" price and may be subject to a mandatory repurchase under specific change of control and credit rating downgrade conditions.
Key Highlights
- 1Harris Corporation successfully closed a $400 million offering of 5.95% Notes due 2017.
- 2Net proceeds from the offering amounted to approximately $386 million after fees and expenses.
- 3The notes mature on December 1, 2017.
- 4Interest on the notes is payable semi-annually at a rate of 5.95% per year.
- 5The company has the option to redeem the notes early at a 'make whole' price.
- 6A change of control event coupled with a below investment grade rating could trigger a mandatory repurchase offer at 101% of par.