Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced on April 26, 2013, its decision to exercise its option to redeem its entire outstanding $300 million principal amount of 5% Notes due October 1, 2015. This redemption is scheduled to occur on May 28, 2013. Investors should note that the redemption will be executed at a "make-whole" price, as defined within the terms of the notes. This action indicates the company's proactive management of its debt obligations and capital structure. The accompanying press release, filed as an exhibit, provides the full details of this announcement.
Key Highlights
- 1Harris Corporation is exercising its option to redeem all outstanding $300 million of its 5% Notes due October 1, 2015.
- 2The redemption date for these notes is set for May 28, 2013.
- 3The redemption will occur at a 'make-whole' price, as specified in the indenture for the notes.
- 4This action suggests the company is managing its debt and potentially refinancing at more favorable terms or optimizing its capital structure.
- 5The filing includes a press release dated April 26, 2013, detailing this event.
- 6The report was filed on April 26, 2013, with an earliest event date of April 25, 2013.
Frequently Asked Questions
The main event is Harris Corporation's decision to redeem its $300 million aggregate principal amount of 5% Notes due October 1, 2015, in full.
The notes are scheduled to be redeemed on May 28, 2013.
A 'make-whole' redemption price is a provision in some bond indentures that requires the issuer to pay bondholders an amount that compensates them for the 'loss' of future interest payments due to early redemption. This price is typically higher than the face value of the bonds and is calculated based on a formula defined in the bond's terms, often involving the present value of remaining interest payments discounted at a specified rate.
Companies typically redeem debt early to take advantage of lower prevailing interest rates, to reduce interest expense, or to optimize their capital structure. In this case, it suggests Harris Corporation may have found it financially advantageous to pay off the 5% notes before their maturity date.