Summary
L3Harris Technologies (LHX) announced the closing of a $600 million 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 million aggregate principal amount of 3.832% Notes due 2025 upon their maturity.
Key Highlights
- 1L3Harris successfully closed the issuance and sale of $600 million in 5.500% Notes due 2054.
- 2The debt offering was completed under the company's automatic shelf registration statement.
- 3Proceeds will be used for general corporate purposes.
- 4A key use of funds is to repay commercial paper borrowings.
- 5The company also plans to use proceeds to repay its $600 million of 3.832% Notes due 2025 upon maturity.
- 6The issuance adds long-term debt with a fixed interest rate of 5.500%.
Frequently Asked Questions
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.
The new notes have an aggregate principal amount of $600 million, carry a fixed interest rate of 5.500%, and mature in 2054.
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.