Summary
Lockheed Martin Corporation (LMT) announced on June 1, 2007, an adjustment to the conversion rate of its $1 billion Floating Rate Convertible Senior Debentures due 2033. This adjustment, effective June 4, 2007, will change the conversion rate from 13.4920 shares to 13.6528 shares of common stock per $1,000 principal amount of debentures. Consequently, the effective conversion price for these debentures will decrease to $73.25 per share.
Key Highlights
- 1Lockheed Martin announced an adjustment to the conversion rate of its convertible senior debentures.
- 2The principal amount of the affected debentures is $1 billion.
- 3The debentures are Floating Rate Convertible Senior Debentures due 2033.
- 4The conversion rate is increasing from 13.4920 to 13.6528 shares of common stock per $1,000 principal.
- 5The new effective conversion price will be $73.25 per share.
- 6This adjustment is effective immediately prior to the opening of business on June 4, 2007.
Frequently Asked Questions
The main purpose of this 8-K filing is to announce an adjustment to the conversion rate for Lockheed Martin's outstanding $1 billion Floating Rate Convertible Senior Debentures due 2033.
The conversion rate will increase from 13.4920 shares of common stock to 13.6528 shares of common stock for every $1,000 principal amount of debentures. This change results in a lower effective conversion price of $73.25 per share.
The adjustment to the conversion rate will be effective immediately prior to the opening of business on June 4, 2007.
The total principal amount of the outstanding Floating Rate Convertible Senior Debentures due 2033 affected by this adjustment is $1 billion.