Lockheed to issue $1.34 billion new notes, cash in exchange offer

By Jennifer Chiou

New York, Dec. 13 - Lockheed Martin Corp. announced that it expects to issue $1,336,384,000 of new 4.07% notes due 2042 notes and pay a cash consideration of $225,408,323 in its exchange offer for nine series of notes and debentures.

The company previously said that any participating holders who tender after the early deadline will now receive the early participation payment.

Holders tendered the following:

• $60,978,000 of the $190 million of 7% debentures due Sept. 15, 2023 (Lockheed Martin as successor in interest to Loral Corp.);

• $275,000 of the $167,772,000 of 8.375% debentures due June 15, 2024 (Lockheed Martin as successor to Loral);

• $7,855,000 of the $150 million of 7.625% debentures due June 15, 2025 (Lockheed Martin as successor to Loral);

• $60,101,000 of the $228,495,000 of 7.75% debentures due May 1, 2026;

• $7,846,000 of the $205,047,000 of 8.5% debentures due Dec. 1, 2029;

• $30.07 million of the $69,071,000 of 7.2% debentures due May 1, 2036;

• $426,739,000 of the $1,079,230,000 of 6.15% notes due Sept. 1, 2036;

• $281,842,000 of the $600 million of 5.5% notes due Nov. 15, 2039; and

• $293,426,000 of the $728,191,000 of 5.72% notes due June 1, 2040.

As of the early deadline of 5 p.m. ET on Nov. 28, tenders for exchange were unchanged for the first six series listed above. They increased from $415,499,000, $270,552,000 and $284,741,000, respectively, for the last three series of notes.

The exchange offer ended at midnight ET on Dec. 12. Tendered notes had to be withdrawn by the early deadline.

The exchange offer was conditioned on minimum tenders so that at least $250 million principal amount of the new notes would be issued in exchange for the old notes.

The exchange offer was made only to holders who are qualified institutional buyers under Rule 144A or who are non-U.S. persons under Regulation S.

Global Bondholder Services Corp. was the information agent (866 794-2200 or for banks and brokers 212 430-3774).

The global security company is based in Bethesda, Md. It launched the offer on Nov. 14.

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