Summary
L3Harris Technologies, Inc. (LHX) announced the successful closing of its issuance and sale of $250 million in Floating Rate Notes due March 2023. These notes carry a variable interest rate tied to three-month LIBOR plus a 0.750% spread, resetting quarterly, and mature on March 10, 2023. The issuance was conducted under an existing shelf registration statement, indicating efficient use of established financing vehicles. The primary purpose of this debt issuance is to proactively refinance an upcoming maturity. Specifically, L3Harris will utilize the net proceeds, alongside existing cash, to repay its $250 million Floating Rate Notes that are due in April 2020. This strategic move aims to manage its debt obligations efficiently and potentially secure more favorable terms or extend its debt maturity profile. The remaining proceeds will be allocated for general corporate purposes, providing continued financial flexibility.
Key Highlights
- 1Closed issuance of $250 million in Floating Rate Notes due March 2023.
- 2Notes bear interest at a floating rate: three-month LIBOR + 0.750%, resetting quarterly.
- 3Maturity date for the new notes is March 10, 2023.
- 4Proceeds will be used to repay $250 million of Floating Rate Notes maturing in April 2020.
- 5This debt issuance is being used for debt refinancing and general corporate purposes.
- 6The offering was made under an existing Form S-3 shelf registration statement.