Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced the establishment of a new $1 billion, five-year senior unsecured revolving credit facility, effective September 28, 2012. This new facility replaces two previous credit agreements: a $750 million five-year facility and a $250 million 364-day facility, both of which were terminated without penalty or outstanding debt at the time of replacement. The primary purpose of this new credit facility is to provide financial flexibility for working capital and general corporate purposes, including support for its commercial paper program. The facility allows for potential increases up to $1.5 billion and can be used for borrowings in multiple currencies, subject to certain sub-limits and conditions. The terms include interest rate options based on LIBOR or a base rate, plus applicable margins that adjust with the company's debt ratings, and a quarterly unused commitment fee.
Key Highlights
- 1Established a new $1 billion, five-year senior unsecured revolving credit facility.
- 2Replaced two prior credit facilities totaling $1 billion in capacity.
- 3No outstanding debt or penalties were incurred upon the termination of previous credit agreements.
- 4The new facility provides flexibility for working capital and general corporate purposes.
- 5Potential to increase credit capacity by an additional $500 million, up to a total of $1.5 billion.
- 6Borrowings can be denominated in multiple currencies, with sub-limits for non-U.S. currency.
- 7Interest rates and fees are tied to the company's senior unsecured long-term debt ratings.