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