Exelis plans to sell $650 million 10-, 30-year notes via Rule 144A

By Andrea Heisinger

New York, Sept. 14 - Exelis, Inc. announced a $650 million offering of notes (Baa3/BBB/BBB+) in two tranches on Wednesday, an informed source said.

The deal went overnight due to it being a first-time sale with no outstanding bonds to use for guidance, and because of the sheer number of sales in the market for the day, a source said.

The offering consists of $350 million of 10-year notes and $300 million of 30-year bonds.

Barclays Capital Inc., Citigroup Global Market Inc. and J.P. Morgan Securities LLC are the bookrunners.

The notes will be sold under Rule 144A and Regulation S.

Proceeds will be used for general corporate purposes, including working capital and a special distribution to parent company ITT Corp.

The notes are guaranteed by ITT until Exelis' split from the company.

The defense technology segment, and eventual spinoff, from diversified manufacturing company ITT is based in White Plains, N.Y.

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