Lockheed gives early exchange results; all to receive early payment

By Jennifer Chiou

New York, Nov. 29 - Lockheed Martin Corp. announced the early results of its offer to exchange nine series of its outstanding debt for a new series of 4.07% notes due 2042 plus cash.

The company also said that any participating holders who tender after the early deadline will now receive the early participation payment.

As of 5 p.m. ET on Nov. 28, holders had tendered the following:

• $60,978,000 of the $190 million of 7% debentures due Sept. 15, 2023 (Lockheed Martin as successor in interest to Loral Corp.);

• $275,000 of the $167,772,000 of 8.375% debentures due June 15, 2024 (Lockheed Martin as successor to Loral);

• $7,855,000 of the $150 million of 7.625% debentures due June 15, 2025 (Lockheed Martin as successor to Loral);

• $60,101,000 of the $228,495,000 of 7.75% debentures due May 1, 2026;

• $7,846,000 of the $205,047,000 of 8.5% debentures due Dec. 1, 2029;

• $30.07 million of the $69,071,000 of 7.2% debentures due May 1, 2036;

• $415,499,000 of the $1,079,230,000 of 6.15% notes due Sept. 1, 2036;

• $270,552,000 of the $600 million of 5.50% notes due Nov. 15, 2039; and

• $284,741,000 of the $728,191,000 of 5.72% notes due June 1, 2040.

The company will issue new notes and a cash amount for each $1,000 principal amount of outstanding notes tendered under the offer plus an early participation payment for all tendering holders.

As announced, the exchange offer will end at midnight ET on Dec. 12. Tendered notes had to be withdrawn by the early deadline.

The exchange offer is conditioned on minimum tenders so that at least $250 million principal amount of the new notes will be issued in exchange for the old notes, and Lockheed said it has met this condition.

The exchange offer is being made only to holders who are qualified institutional buyers under Rule 144A or who are non-U.S. persons under Regulation S.

Global Bondholder Services Corp. is the information agent (866 794-2200 or for banks and brokers 212 430-3774).

The global security company is based in Bethesda, Md. It launched the offer on Nov. 14.

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