Summary
Raytheon Technologies Corporation (RTX) has successfully completed its private offers to exchange outstanding subsidiary notes for new RTX notes. These offers, which commenced on May 11, 2020, expired on June 8, 2020. As of the completion date of June 10, 2020, RTX managed to exchange approximately $8.19 billion, representing 88.55% of the total $9.2 billion aggregate principal amount of legacy notes from Goodrich Corporation, Raytheon Company, and Rockwell Collins. This significant exchange consolidates RTX's debt structure under the new corporate entity, simplifying its financial profile. The new RTX notes were issued under the Company's amended and restated indenture and mirror the interest rates, payment dates, and maturity dates of the original subsidiary notes they replaced. While the exchange offers are now closed, RTX has commitments to register the exchanged notes or file shelf registration statements to allow for future resales, providing liquidity options for holders.
Key Highlights
- 1RTX completed private exchange offers for subsidiary notes on June 10, 2020.
- 2Approximately 88.55% ($8.19 billion out of $9.2 billion) of legacy subsidiary notes were exchanged.
- 3The exchange consolidates debt from former entities (Goodrich, Raytheon Company, Rockwell Collins) under RTX.
- 4New RTX notes issued in the exchange have terms (interest rate, maturity) matching the exchanged subsidiary notes.
- 5The exchange offers have now expired and are no longer open.
- 6RTX has obligations under a registration rights agreement to register the new RTX notes or file shelf registration statements.
- 7The exchanged RTX notes were offered to qualified institutional buyers and non-U.S. persons under specific exemptions.