Summary
This 8-K filing from L3Harris Technologies, Inc. (formerly Harris Corporation) on February 27, 2018, announces the successful closing of a $300 million issuance of Floating Rate Notes due February 2019. These notes bear interest at a floating rate tied to three-month LIBOR plus a spread of 0.475%. The issuance was conducted under the company's existing shelf registration statement, indicating an efficient capital-raising process. Of particular importance to investors, the company intends to use the net proceeds from this debt issuance, along with existing cash, to make voluntary contributions of approximately $300 million to its U.S. qualified defined benefit pension plans. This action is a strategic move to manage its pension obligations and potentially reduce future financial liabilities, demonstrating proactive financial management.
Key Highlights
- 1Harris Corporation closed the issuance and sale of $300 million in Floating Rate Notes due February 2019.
- 2The Notes carry a floating interest rate, reset quarterly, at three-month LIBOR plus 0.475%.
- 3The issuance was made under the company's existing shelf registration statement on Form S-3.
- 4Proceeds will be used for voluntary contributions of approximately $300 million to U.S. qualified defined benefit pension plans.
- 5This pension contribution is planned for the remainder of fiscal year 2018.
- 6The filing includes key exhibits such as the Underwriting Agreement and the form of the Global Note.