8-KMaterial Agreements

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Agreement Terminated (May 28, 2013)

Filed May 28, 2013For Securities:LHX

Summary

L3Harris Technologies, Inc. (formerly Harris Corporation) filed an 8-K on May 28, 2013, to report the termination of a material definitive agreement. Specifically, the company completed the full redemption of its outstanding $300 million principal amount of 5% Notes due October 1, 2015. This action was taken in accordance with the terms of the indenture governing these notes. The redemption was executed at a 'make-whole' redemption price, totaling $332,215,589.26, plus accrued interest. By depositing the necessary funds with the trustee, Harris Corporation has discharged all its obligations related to these notes, effectively terminating and canceling them. This event signifies a proactive financial management decision by the company, likely aimed at optimizing its debt structure or reducing interest expenses.

Key Highlights

  • 1Harris Corporation redeemed its entire $300 million principal amount of 5% Notes due October 1, 2015.
  • 2The redemption occurred on May 28, 2013.
  • 3The company paid a 'make-whole' redemption price of $332,215,589.26, plus accrued interest.
  • 4This action was taken in accordance with the terms of the governing indenture dated September 3, 2003.
  • 5All obligations under the notes have been discharged, and the notes have been terminated and canceled.
  • 6The filing is classified under Item 1.02 Termination of Material Definitive Agreement.

Frequently Asked Questions

The primary purpose of this 8-K filing was to inform investors and the public that Harris Corporation completed the full redemption of its outstanding $300 million principal amount of 5% Notes due October 1, 2015.

The company paid a 'make-whole' redemption price of $332,215,589.26, in addition to accrued and unpaid interest on the principal amount of the notes up to the redemption date.

A 'make-whole' redemption provision in a bond agreement allows the issuer to redeem the bonds before maturity, but requires them to pay a price that compensates the bondholders for the loss of future interest payments. This price is typically calculated based on a formula that considers current interest rates and the remaining time to maturity.

By completing the redemption and depositing the required funds, Harris Corporation has discharged all its obligations under these specific notes. This means the $300 million debt is no longer outstanding, and the notes have been terminated and canceled, reducing the company's future interest payment obligations related to this debt.