Summary
L3Harris Technologies, Inc. (LHX) filed an 8-K on May 30, 2019, to announce that Harris Corporation, in anticipation of its combination with L3 Technologies, Inc., has launched exchange offers for L3's outstanding senior notes. This move is a significant step in the pre-merger integration process, aiming to streamline the capital structures of the two companies before they officially combine. Investors should pay close attention to the terms of these exchange offers as they will impact the debt profile and financial obligations of the merged entity.
Key Highlights
- 1Harris Corporation initiated exchange offers for L3 Technologies' outstanding senior notes.
- 2The exchange offers are in preparation for the anticipated combination of Harris and L3.
- 3Eligible holders of L3's 4.950% Senior Notes due 2021, 3.850% Senior Notes due 2023, 3.950% Senior Notes due 2024, 3.850% Senior Notes due 2026, and 4.400% Senior Notes due 2028 are being targeted.
- 4The exchange will involve up to $3.35 billion aggregate principal amount of new notes issued by Harris, plus cash.
- 5This action is part of the merger's financial and capital structure consolidation efforts.
- 6The press release detailing these offers is attached as an exhibit.