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L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Corporate Update (Mar 4, 2020)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed March 4, 2020
Period End
March 4, 2020
Security
LHX
In the record · 2016–202610-K1110-Q328-K177

LHX filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 177 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’18Jun ’18
  2. Leadership change8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed March 4, 2020. Cited figures are marked; the original filing is the authoritative source.

L3Harris Technologies, Inc. (LHX) announced on March 4, 2020, the pricing of an underwritten public offering for $250 milliona aggregate principal amount of Floating Rate Notes due March 2023.

These unsecured and unsubordinated notes will bear interest at a floating rate of three-month LIBOR plus 0.750% per year, resetting quarterly, and are set to mature on March 10, 2023. The offering is being conducted under an effective registration statement previously filed with the SEC. The primary purpose of this new debt issuance is to refinance existing debt, specifically to repay $250 millionb of Floating Rate Notes due April 2020 that mature on April 30, 2020.

Any remaining proceeds will be used for general corporate purposes. This strategic move indicates active debt management by the company to optimize its capital structure and address upcoming maturities, providing financial flexibility. The transaction is expected to close on March 13, 2020.

02—Key points

Key Highlights

  1. L3Harris priced a $250 million offering of Floating Rate Notes due March 2023.
  2. The Notes carry a floating interest rate of three-month LIBOR plus 0.750%, resetting quarterly.
  3. The primary use of proceeds is to repay $250 million of existing Floating Rate Notes maturing in April 2020.
  4. The issuance is a proactive debt management strategy to address upcoming maturities.
  5. The Notes are unsecured and unsubordinated, ranking equally with other senior unsecured debt.
  6. The offering is made under the company's effective Form S-3 registration statement.
  7. The transaction is expected to close on March 13, 2020.

03—Questions

Frequently Asked Questions

  1. What is the purpose of this new debt issuance?

    The primary purpose of the $250 million offering of Floating Rate Notes is to repay $250 million of the Company's Floating Rate Notes that are due to mature on April 30, 2020. Any remaining funds will be used for general corporate purposes.

  2. What are the terms of the new Floating Rate Notes?

    The Notes have an aggregate principal amount of $250 million, mature on March 10, 2023, and bear interest at a floating rate equal to three-month LIBOR plus 0.750% per year. The interest rate will reset quarterly. They are unsecured and unsubordinated.

  3. How does this offering affect L3Harris's financial leverage?

    This offering is essentially a refinancing of existing debt. By issuing new notes to repay existing maturing notes, the company is managing its debt maturity profile and maintaining its overall debt levels, rather than significantly increasing leverage. It demonstrates active capital structure management.

  4. When is the expected closing date for this offering?

    The sale of the Notes is expected to close on March 13, 2020, subject to customary closing conditions.

04—Continue

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