L3Harris Technologies (LHX) has released an update to notify the public and investors about an entry into a material definitive agreement.
L3Harris Technologies, Inc. established a new $1.5 billion senior unsecured revolving credit facility on January 26, 2024, replacing the previous $2.4 billion facility from March 2023. The new facility, which prohibits use of funds for hostile acquisitions or illegal activities, allows L3Harris to borrow, prepay, and re-borrow through January 24, 2025, with interest rates tied to the secured overnight financing rate or the base rate, plus varying margins influenced by the company’s senior debt ratings. The agreement includes a quarterly unused commitment fee, standard representations, warranties, covenants, and events of default, with provisions for subsidiary involvement and mandatory prepayment under certain conditions.
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For a comprehensive understanding of the announcement, you can read the full document here.
