Summary
L3Harris Technologies, Inc. (LHX) announced a significant debt management transaction through an 8-K filing on November 11, 2020. The company entered into an underwriting agreement to issue $650 million in 1.800% Notes due 2031. The primary purpose of this new debt issuance is to fund the redemption of its outstanding $650 million aggregate principal amount of 4.95% Senior Notes due February 15, 2021. This strategic move allows L3Harris to refinance its debt at a substantially lower interest rate, reducing future interest expenses and improving its overall financial flexibility.
Key Highlights
- 1L3Harris Technologies announced an underwritten public offering of $650 million in 1.800% Notes due 2031.
- 2The company intends to use the net proceeds to redeem in full all $650 million of its 4.95% Senior Notes due February 15, 2021.
- 3This refinancing represents a significant reduction in the company's interest expense, given the difference between the 1.800% new notes and the 4.95% old notes.
- 4The 4.95% Notes were issued by both the parent company and its subsidiary, L3 Technologies, Inc.
- 5Notices for the optional redemption of the 4.95% Notes were issued, with a redemption date set for December 14, 2020.
- 6The offering is being made under an effective registration statement on Form S-3, previously filed with the SEC.
- 7Proceeds beyond the note redemption will be used for general corporate purposes.