L-3 Communications $1 billion 10-year notes talked 6½%-6 5/8%, to price Wednesday

By Paul A. Harris

St. Louis, July 26 - L-3 Communications Corp. talked its $1 billion offering of 10-year senior subordinated notes (Ba3/BB+/BB) at 6½% to 6 5/8% on Tuesday, according to a syndicate source.

Pricing is expected to take place Wednesday afternoon.

Lehman Brothers and Banc of America Securities LLC are joint bookrunners for the Rule 144A offering. Co-managers include Bear Stearns & Co. and Credit Suisse First Boston, with others expected to emerge.

The notes come with five years of call protection and a three-year 35% equity clawback.

The company is also in the market with a $500 million offering of convertible securities.

Proceeds will be used to fund a portion of L-3's acquisition of The Titan Corp.

L-3 Communications is a provider of intelligence, surveillance and reconnaissance systems, secure communications systems, aircraft modernization, training and government services and a supplier of high technology products. It has headquarters in New York City.

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