Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced on May 23, 2018, an underwritten public offering for $850 million in aggregate principal amount of 4.400% Notes due 2028. The company plans to use the net proceeds from this offering, along with existing cash, to redeem in full its outstanding $400 million of 4.40% Notes due December 2020 and $400 million of 5.55% Notes due October 2021. This strategic move aims to refinance existing debt with new, longer-term notes and potentially improve the company's debt maturity profile and interest expense structure. The redemption of the 2020 and 2021 notes was initiated on May 23, 2018, with scheduled redemption dates of June 22, 2018. This refinancing activity demonstrates proactive capital management by L3Harris Technologies as it seeks to optimize its balance sheet. Investors should note the details of the new debt issuance, including the coupon rate and maturity, as well as the company's strategy for debt management.
Key Highlights
- 1L3Harris Technologies (Harris Corporation) is issuing $850 million in 4.400% Notes due 2028.
- 2The offering is being conducted through an underwritten public offering with major financial institutions.
- 3Proceeds will be used to redeem $400 million of 4.40% Notes due 2020 and $400 million of 5.55% Notes due 2021.
- 4This represents a debt refinancing strategy to extend maturity and potentially alter interest costs.
- 5The company is concurrently initiating the optional redemption of the 2020 and 2021 notes.
- 6The redemption of the older notes is scheduled for June 22, 2018.
- 7The new notes are being issued under the company's effective registration statement on Form S-3.