Summary
This 8-K filing by L3HARRIS TECHNOLOGIES, INC. /DE/ (formerly Harris Corporation) on November 9, 2017, announces the closure of a debt offering and the subsequent use of those proceeds. Specifically, the company successfully issued and sold $250 million in Floating Rate Notes due April 2020. These notes carry a floating interest rate tied to three-month LIBOR plus a spread of 0.480%, resetting quarterly. The net proceeds generated from this offering were strategically used, along with existing cash, to fully repay approximately $250 million of outstanding indebtedness under its senior unsecured term loan facility. This move indicates a proactive approach to debt management and capital structure optimization by the company.
Key Highlights
- 1L3HARRIS TECHNOLOGIES, INC. (Harris Corporation) closed a $250 million offering of Floating Rate Notes due April 2020.
- 2The Notes bear interest at a floating rate of three-month LIBOR plus 0.480%, resetting quarterly.
- 3Proceeds were used to fully repay approximately $250 million of outstanding indebtedness under its senior unsecured term loan facility.
- 4This transaction reflects active debt management and potential refinancing efforts.
- 5The offering was conducted under the company's existing shelf registration statement.
- 6Key documents related to the offering, including the underwriting agreement and form of note, are filed as exhibits.
Frequently Asked Questions
The primary purpose was to disclose the successful closing of a $250 million debt offering of Floating Rate Notes due April 2020 and to report on the use of the net proceeds from this offering.
The company issued new floating-rate debt and used the proceeds to retire existing term loan debt. This indicates a refinancing activity, potentially altering the maturity profile and interest rate exposure of its debt obligations.
The Notes will bear interest at a floating rate, which is reset quarterly and determined by three-month LIBOR plus a spread of 0.480% per year.
Yes, the filing lists an Underwriting Agreement with Morgan Stanley & Co. LLC, the Form of Floating Rate Global Note, and an Opinion of Holland & Knight LLP regarding the validity of the Notes as filed exhibits.