Summary
L3Harris Technologies, Inc. (LHX) filed an 8-K report on July 1, 2019, detailing significant corporate events following the consummation of the merger between L3 Technologies, Inc. and Harris Corporation. Key developments include the establishment of a new $2 billion, five-year senior unsecured revolving credit facility, replacing Harris' prior credit agreement. This new facility provides L3Harris with enhanced financial flexibility and significantly larger borrowing capacity. The report also announces the completion of the merger, with L3Harris Technologies, Inc. as the new name and ticker symbol (LHX). The company has reorganized its operations into four distinct mission-focused segments to better align with its strategic direction and market focus. Furthermore, L3Harris disclosed executive leadership changes, including the appointment of a new Chief Financial Officer, Jesus (Jay) Malave, Jr., and updated director compositions following the merger. The company also signaled its commitment to shareholder returns by announcing an increased quarterly dividend rate and a substantial new $4.0 billion share repurchase program.
Key Highlights
- 1L3Harris Technologies, Inc. (LHX) has officially completed its merger, adopting the new name and ticker symbol.
- 2A new $2 billion, five-year senior unsecured revolving credit facility has been established, significantly increasing liquidity and replacing the prior credit agreement.
- 3The company has reorganized into four new mission-focused business segments: Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems.
- 4Leadership updates include the appointment of Jesus (Jay) Malave, Jr. as the new Senior Vice President and Chief Financial Officer.
- 5The Board of Directors has been reconstituted to include members from both legacy L3 and Harris organizations.
- 6L3Harris announced an increase in its quarterly cash dividend rate to $3.00 annualized.
- 7A new $4.0 billion share repurchase authorization has been approved, with an expectation to repurchase up to $2.5 billion in shares over the next twelve months.