Summary
L3Harris Technologies, Inc. (LHX) announced on May 23, 2018, its intention to redeem in full two series of its outstanding notes: $400 million in 4.40% notes due December 2020 and $400 million in 5.55% notes due October 2021. The redemption is scheduled for June 22, 2018, and will be executed at a "make-whole" redemption price. This action suggests a proactive approach by the company to manage its debt obligations and potentially refinance at more favorable terms or to optimize its capital structure. Investors should note that this redemption will extinguish all outstanding principal and accrued interest on these specific notes as of the redemption date. The redemption is a significant financial event that could indicate the company's confidence in its cash flow generation or its ability to secure new, potentially lower-cost financing. While the specific reasons for the redemption are not detailed in this filing, it is common for companies to redeem debt when interest rates have fallen, or when strategic initiatives require a shift in their debt profile. Shareholders and potential investors should monitor subsequent filings for any information regarding new debt issuances or changes in the company's overall leverage.
Key Highlights
- 1L3Harris Technologies is redeeming in full its 4.40% notes due December 2020 ($400 million principal).
- 2L3Harris Technologies is also redeeming in full its 5.55% notes due October 2021 ($400 million principal).
- 3The redemption date for both note series is June 22, 2018.
- 4The notes will be redeemed at a "make-whole" redemption price, as specified in the respective note agreements.
- 5Upon redemption, the notes will no longer be outstanding, and interest will cease to accrue.
- 6This action represents a total debt reduction of $800 million.
- 7The company is using The Depository Trust Company and specified paying agents for the redemption process.