New Issue: L-3 Communications 10-year deal upsized to $400 million, yields 6.1875%

By Paul A. Harris

St. Louis, May 14 - L-3 Communications Holdings, Inc. priced an upsized drive-by offering of $400 million 6 1/8% senior secured notes due July 15, 2013 Wednesday at 99.544 to yield 6.1875%, according to a syndicate source.

Price talk was for a yield in the 6¼% area. The original size was $300 million.

Lehman Brothers and Morgan Stanley were underwriters.

Proceeds from the Rule 144A deal will be used to redeem L-3's $180 million of 8½% senior subordinated notes due in 2008, and for general corporate purposes.

Issuer:	L-3 Communications Holdings, Inc.
Amount:	$400 million (increased from $300 million)
Maturity:	July 15, 2013
Security description:	Senior secured notes
Bookrunners:	Lehman Brothers, Morgan Stanley
Coupon:	6 1/8%
Price:	99.544
Yield:	6.1875%
Call features:	Callable on July 15, 2008 at 103.063, declining ratably to par on July 15, 2011 and thereafter
Equity clawback:	Until July 15, 2006 for 35% at 106.125
Settlement date:	May 21, 2003
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Price talk:	6¼% area

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