8-KOther EventsExhibits & Filings

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Corporate Update (Feb 28, 2018)

Filed February 28, 2018For Securities:LHX

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.

Frequently Asked Questions

The primary purpose of the $300 million Floating Rate Notes issuance is to fund voluntary contributions of approximately $300 million to the company's U.S. qualified defined benefit pension plans. This action is intended to proactively manage pension obligations.

The notes bear interest at a floating rate, which is reset quarterly. The rate is calculated as three-month LIBOR plus a spread of 0.475% per year.

The Floating Rate Notes have a maturity date of February 2019.

This debt issuance allows the company to address its pension obligations. By making significant voluntary contributions now, L3Harris aims to manage its pension liabilities and potentially reduce future financial risks or required contributions, demonstrating a strategic approach to its balance sheet.