Summary
Northrop Grumman Corporation (NOC) has filed an 8-K report detailing its recent debt issuance. On July 30, 2009, the company successfully issued $350 million in 3.70% Senior Notes due 2014 and $500 million in 5.05% Senior Notes due 2019, totaling $850 million in aggregate principal amount. These notes are unsecured senior obligations, ranking equally with existing unsecured and unsubordinated debt, but are effectively subordinated to secured debt and to all indebtedness of Northrop Grumman's subsidiaries. The issuance was conducted under an effective registration statement on Form S-3, with an Underwriting Agreement executed on July 27, 2009, with several major financial institutions acting as underwriters. This action indicates the company is actively managing its capital structure, likely to fund ongoing operations, potential acquisitions, or refinance existing debt.
Key Highlights
- 1Northrop Grumman issued $850 million in new senior notes: $350 million of 3.70% Senior Notes due 2014 and $500 million of 5.05% Senior Notes due 2019.
- 2The notes are unsecured senior obligations, ranking equally with existing senior unsecured debt.
- 3The issuance occurred on July 30, 2009, with an Underwriting Agreement signed on July 27, 2009.
- 4The notes mature on August 1, 2014 (2014 Notes) and August 1, 2019 (2019 Notes).
- 5Interest payments will be made semi-annually on February 1 and August 1, commencing February 1, 2010.
- 6The company retains the option to redeem the notes, in whole or in part, at specified redemption prices.
- 7The offering was conducted under an effective Form S-3 registration statement.