Summary
L3Harris Technologies (formerly Harris Corporation) filed an 8-K on September 29, 2011, reporting on a First Amendment to its 364-Day Revolving Credit Agreement. The amendment, dated September 27, 2011, primarily extended the maturity date of the credit facility to September 26, 2012, and adjusted the interest rate margins and commitment fees. These adjustments are tied to changes in the company's senior unsecured long-term debt ratings, indicating a dynamic approach to managing borrowing costs based on creditworthiness. Notably, the aggregate commitment under this revolving credit facility was reduced from $300 million to $250 million. The facility is designated for working capital, general corporate purposes, and supporting the company's commercial paper program. As of the report date, there were no outstanding borrowings under this specific facility, though the company had approximately $560 million in short-term debt outstanding under its commercial paper program, largely to fund share repurchases. The company also maintains a separate $750 million five-year senior unsecured revolving credit facility.
Key Highlights
- 1Harris Corporation amended its 364-Day Revolving Credit Agreement on September 27, 2011.
- 2The maturity date of the 364-Day Revolving Credit Agreement was extended to September 26, 2012.
- 3The revolving credit commitment was permanently reduced from $300 million to $250 million.
- 4Interest rate margins (over LIBOR and base rate) and commitment fees were adjusted and made variable based on the company's senior debt ratings.
- 5The credit facility can be used for working capital, general corporate purposes, and to support commercial paper.
- 6As of the filing date, there were no outstanding borrowings under the 364-Day Revolving Credit Agreement.
- 7The company had approximately $560 million in commercial paper outstanding, used primarily for share repurchases.