By Paul A. Harris
St. Louis, July 27 - L-3 Communications Corp. priced $1 billion of 10-year senior subordinated notes (Ba3/BB+/BB) at 99.09 with a 6 3/8% coupon to yield 6½% in a quick-to-market transaction, according to a syndicate source.
The yield came on the tight end of the 6½% to 6 5/8% price talk.
Lehman Brothers and Banc of America Securities LLC were joint bookrunners for the Rule 144A offering. The co-managers were Bear Stearns & Co. and Credit Suisse First Boston.
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 supplier of high technology products. It has headquarters in New York City.
| Issuer: | L-3 Communications Corp.
|
| Amount: | $1 billion
|
| Maturity: | Oct. 15, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Lehman Brothers, Banc of America Securities LLC
|
| Joint lead managers: | Bear Stearns, Credit Suisse First Boston
|
| Coupon: | 6 3/8%
|
| Price: | 99.09
|
| Yield: | 6½%
|
| Spread: | 225 basis points
|
| Call features: | Callable after Oct. 15, 2010 at 103.188, 102.125, 101.063, par on and after Oct. 15, 2013
|
| Equity clawback: | Prior to Oct. 15, 2008 for up to 35% at 106.375
|
| Trade date: | July 27
|
| Settlement date: | July 29
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Fitch: BB
|
| Price talk: | 6½%-6 5/8%
|
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