Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced on June 22, 2018, the full redemption of its outstanding $400 million principal amount of 4.40% notes due December 2020 and its $400 million principal amount of 5.55% notes due October 2021. The total cost of these redemptions, including accrued interest, was approximately $849.5 million. This action was previously signaled by the company on May 24, 2018, indicating its intent to exercise make-whole redemption options. This proactive debt management move suggests a strategic financial decision by the company. By redeeming these notes early, L3Harris likely aimed to reduce future interest expenses, optimize its capital structure, or potentially refinance at more favorable rates. Investors should view this as a signal of the company's financial flexibility and its commitment to managing its debt obligations efficiently.
Key Highlights
- 1Harris Corporation (now L3Harris Technologies) redeemed $800 million in aggregate principal amount of its outstanding notes.
- 2The redeemed notes included $400 million of 4.40% notes due December 2020.
- 3The redeemed notes also included $400 million of 5.55% notes due October 2021.
- 4The total cost of redemption, including accrued interest, was approximately $849.5 million ($415.5 million for 2020 notes and $434.0 million for 2021 notes).
- 5The company exercised its option to redeem the notes at a 'make-whole' price.
- 6This redemption effectively terminates and cancels the specified notes.
- 7The company had previously announced its intention to redeem these notes on May 24, 2018.