L3Harris Technologies intends to issue new debt for Aerojet purchase

By Sara Rosenberg

New York, Dec. 19 – L3Harris Technologies plans to issue new debt as the primary funding for its acquisition of Aerojet Rocketdyne Holdings Inc., according to a company presentation.

The company has a leverage target of less than 3x within the next couple of years to sustain solid investment-grade ratings. This is planned to be accomplished by reducing share repurchases from current levels.

Other funds for the transaction will come from existing cash.

Under the agreement, Aerojet is being bought for $58 per share, which implies a transaction value of $4.7 billion, inclusive of net debt.

Closing is expected in 2023, subject to regulatory approvals and other customary conditions.

Barclays and Goldman Sachs & Co. LLC are serving as financial advisers to L3Harris. Citi and Evercore Inc. are serving as co-lead financial advisers to Aerojet.

L3Harris is a Melbourne, Fla.-based aerospace and defense technology company. Aerojet is an El Segundo, Calif.-based aerospace and defense company.

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