By Paul A. Harris
St. Louis, Dec. 16 - L-3 Communications Corp. sold $400 million of 10-year 6 1/8% senior subordinated notes (Ba3/BB-) at 98.157 in a quick-to-market transaction Tuesday to yield 6 3/8%, a syndicate source said.
The notes, which mature Jan. 15, 2014, were talked in the area of 6 3/8%.
Lehman Brothers and Banc of America Securities were joint bookrunners on the Rule 144A issue. The co-managers were Morgan Stanley, SG Cowen, Wachovia Securities, BancOne Capital Markets, BNY Securities, Barclays Capital, Credit Lyonnais, Fleet Capital, Scotia Capital, Stephens, SunTrust Robinson Humphrey and UBS Investment Bank.
L-3 Communications plans to use proceeds to repay bank debt and for general corporate purposes.
The issuer is a New York City-based provider of defense and aircraft communications and technology systems.
| Issuer: | L-3 Communications Corp.
|
| Amount: | $400 million
|
| Maturity: | Jan 15, 2014
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| Security description: | Senior subordinated notes
|
| Bookrunners: | Lehman Brothers, Banc of America Securities
|
| Coupon: | 6 1/8%
|
| Price: | 98.157
|
| Yield: | 6 3/8%
|
| Spread: | 215 basis points
|
| Call features: | Callable after Jan. 15, 2009 at 103.063, 102.042, 101.021, par on Jan. 15, 2012 and thereafter
|
| Equity clawback: | Until Jan. 15, 2007 for 35% at 106.125
|
| Settlement date: | Dec. 22, 2003 (T+4)
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| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Rule 144A Cusip: | 502413AN7
|
| Price talk: | 6 3/8% area
|
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