8-KOther EventsExhibits & Filings

LOCKHEED MARTIN CORP 8-K Report, Corporate Update (May 24, 2010)

Filed May 24, 2010For Securities:LMT

Summary

Lockheed Martin Corporation (LMT) filed an 8-K on May 24, 2010, to announce the conclusion of its debt exchange offer. The company offered to exchange its existing debentures, with coupon rates ranging from 7.20% to 8.50% and maturities from 2016 to 2036, for a new series of 5.72% notes due in 2040. This exchange offer aimed to refinance existing debt with newer, lower-interest bearing notes, potentially reducing future interest expenses for the company. Investors holding the older debentures were given the opportunity to swap them for the new notes, which also included an additional cash payment for holders of the 7.20% Debentures due 2036. The press release detailing the expiration of this offer was included as an exhibit to the filing. Notably, the new notes were not registered under the Securities Act of 1933, meaning their resale in the U.S. is subject to registration or an exemption.

Key Highlights

  • 1Lockheed Martin announced the expiration of its debt exchange offer on May 24, 2010.
  • 2The exchange involved swapping older debentures (7.65% to 8.50% interest rates) for new 5.72% notes due 2040.
  • 3This move suggests an effort to refinance debt at a lower cost.
  • 4Holders of 7.20% Debentures due 2036 also received an additional cash payment.
  • 5The new notes were not registered under the Securities Act of 1933, impacting their marketability.
  • 6The press release detailing the offer's expiration is filed as an exhibit.

Frequently Asked Questions

The primary purpose of the debt exchange offer was to refinance Lockheed Martin's outstanding debt. By offering new notes with a lower interest rate (5.72%) compared to the older debentures (ranging from 7.20% to 8.50%), the company aimed to reduce its future interest expenses and potentially improve its overall cost of capital.

The exchange offer involved Lockheed Martin's outstanding 7.65% Debentures due 2016, 7.75% Debentures due 2026, 8.50% Debentures due 2029, and 7.20% Debentures due 2036. These were exchanged for a new series of 5.72% notes due 2040.

Yes, holders of the 7.20% Debentures due 2036 were offered an additional cash payment as part of the exchange, in addition to receiving the new 5.72% notes due 2040.

The fact that the new notes were not registered under the Securities Act of 1933 means they cannot be freely offered or sold in the United States unless they are registered or qualify for an exemption from registration requirements. This could affect their liquidity and marketability for investors.