01—Abstract
Summary
Summary of the 8-K filed August 2, 2024. Cited figures are marked; the original filing is the authoritative source.
L3Harris Technologies (LHX) announced the closing of a $600 milliona debt offering of 5.500% Notes due 2054.
This issuance was conducted under the company's existing shelf registration statement. The net proceeds are intended for general corporate purposes, with specific mention of repaying commercial paper and retiring the $600 millionb aggregate principal amount of 3.832% Notes due 2025 upon their maturity.
02—Key points
Key Highlights
- L3Harris successfully closed the issuance and sale of $600 million in 5.500% Notes due 2054.
- The debt offering was completed under the company's automatic shelf registration statement.
- Proceeds will be used for general corporate purposes.
- A key use of funds is to repay commercial paper borrowings.
- The company also plans to use proceeds to repay its $600 million of 3.832% Notes due 2025 upon maturity.
- The issuance adds long-term debt with a fixed interest rate of 5.500%.
03—Questions
Frequently Asked Questions
What is the purpose of the $600 million note issuance?
L3Harris intends to use the net proceeds from the sale of these notes for general corporate purposes. Specifically, this includes repaying outstanding commercial paper borrowings and retiring the $600 million aggregate principal amount of 3.832% Notes that are due in 2025.
What are the terms of the new notes?
The new notes have an aggregate principal amount of $600 million, carry a fixed interest rate of 5.500%, and mature in 2054.
How does this debt issuance impact the company's financial structure?
This issuance replaces short-term commercial paper and addresses the upcoming maturity of the 2025 notes with longer-term, fixed-rate debt. This can help manage interest rate risk and extend the company's debt maturity profile.
04—Continue