Summary
Lockheed Martin Corporation (LMT) announced on November 13, 2009, that it entered into an underwriting agreement to issue and sell $1.5 billion in senior unsecured notes. This offering comprises $900 million of 4.25% notes due in 2019 and $600 million of 5.50% notes due in 2039. These notes were issued under an existing indenture established in March 2008, which allows for an unlimited issuance of debt securities. This action indicates Lockheed Martin's strategy to raise significant capital through debt financing. Investors should note the coupon rates and maturity dates to assess the cost of this debt and its long-term impact on the company's capital structure. The company's ability to raise such a substantial amount suggests financial stability and continued access to credit markets, even in the prevailing economic climate of late 2009.
Key Highlights
- 1Lockheed Martin is issuing $1.5 billion in senior unsecured notes.
- 2The offering is split into two tranches: $900 million of 4.25% notes due 2019 and $600 million of 5.50% notes due 2039.
- 3Interest on the notes will be paid semi-annually in May and November.
- 4The notes were issued under an existing indenture allowing for unlimited debt issuances.
- 5The transaction was executed via an underwriting agreement with Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
- 6The filing includes the underwriting agreement and forms of the notes as exhibits.