L-3 Communications Holdings, Inc. (NYSE: LLL) subsidiary L-3 Communications Corporation has priced an offering of USD550 million of 10-year senior notes bearing interest at a fixed rate of 3.85% per year and maturing on December 15, 2026, the company said.
The notes are expected to settle on December 5, 2016, subject to customary closing conditions.
L-3 Communications intends to use the net proceeds from the offering plus cash on hand to: (i) replenish the amount of cash used, and the amount of revolving credit borrowings drawn, to repay USD200 million aggregate principal amount of 3.95% senior notes due 2016 that matured on November 15, 2016, and (ii) redeem all of its outstanding 1.50% senior notes due 2017, which have an aggregate principal amount of USD350 million.
Merrill Lynch, Pierce, Fenner & Smith Incorporated; Barclays Capital Inc.; Deutsche Bank Securities Inc.; MUFG Securities Americas Inc.; Scotia Capital (USA) Inc.; SMBC Nikko Securities America, Inc.; SunTrust Robinson Humphrey, Inc.; US Bancorp Investments, Inc.; and Wells Fargo Securities, LLC are acting as joint book-running managers for this offering.
Headquartered in New York City, L-3 employs approximately 38,000 people worldwide and is a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. L-3 is also a prime contractor in aerospace systems.