Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) filed a Form 8-K on December 3, 2010, to report the entry into a material definitive agreement regarding the issuance and sale of new debt securities. The company successfully issued and sold $400 million in 4.40% Notes due 2020 and $300 million in 6.15% Notes due 2040, totaling $700 million in aggregate principal amount. The net proceeds from this offering, approximately $689.7 million after underwriting discounts and expenses, are earmarked for strategic initiatives. These proceeds are intended to fund all or a portion of the acquisition of the Global Connectivity Services business from Schlumberger, repay outstanding commercial paper debt incurred primarily for the CapRock acquisition, and for general corporate purposes. This debt issuance demonstrates the company's proactive capital management to support growth strategies and financial flexibility.
Key Highlights
- 1Harris Corporation issued $400 million of 4.40% Notes due 2020 and $300 million of 6.15% Notes due 2040.
- 2Total aggregate principal amount of the Notes issued is $700 million.
- 3Net proceeds from the offering were approximately $689.7 million after deducting underwriting discounts and expenses.
- 4Proceeds will be used to partially fund the acquisition of Schlumberger's Global Connectivity Services business.
- 5Funds will also be used to repay a portion of commercial paper debt related to the CapRock acquisition.
- 6Remaining proceeds are allocated for general corporate purposes.
- 7The Notes are unsecured and unsubordinated debt instruments.