Summary
Lockheed Martin Corporation (LMT) announced on June 26, 2008, the planned redemption of its $1 billion Floating Rate Convertible Senior Debentures due 2033. The redemption is scheduled for August 15, 2008, with a redemption price of $1,000 per $1,000 principal amount. Holders have the option to convert their debentures into LMT common stock until August 14, 2008. Lockheed Martin intends to satisfy conversion obligations exceeding the accreted principal amount by issuing common stock, with cash for fractional shares. This event triggers accelerated financial obligations related to the debentures. The company also approved a restatement of its charter on June 26, 2008, which does not alter existing terms but consolidates prior amendments into a single document. Lockheed Martin does not anticipate a material impact on its financial condition or results of operations from the debenture redemption or anticipated conversions.
Key Highlights
- 1Lockheed Martin is redeeming all $1 billion of its Floating Rate Convertible Senior Debentures due 2033 on August 15, 2008.
- 2Debenture holders can convert their holdings into LMT common stock until August 14, 2008.
- 3The company will issue common stock to satisfy conversion obligations beyond the accreted principal amount.
- 4The redemption price for non-converted debentures is $1,000 per $1,000 principal amount.
- 5A restatement of Lockheed Martin's charter was approved on June 26, 2008, consolidating prior amendments without changing terms.
- 6The company expects no material impact on its financial condition or results of operations from this event.
- 7The issuance of shares upon conversion is exempt from registration under Section 3(a)(9) of the Securities Act of 1933.