L-3 Communications tenders for $300 million of three series of notes

By Wendy Van Sickle

Columbus, Ohio, Dec. 7 – L-3 Communications Corp. began a cash tender offer for up to $300 million of its 3.95% notes due 2024, 1.5% notes due 2017 and 3.95% notes due 2016, according to a press release.

The tender consideration will be calculated as follows:

• For the $650 million of notes due 2024, by reference to a fixed spread of 195 basis points over the yield based on the bid-side price of the 1.375% Treasury due Nov. 15, 2025 at 2 p.m. ET on Dec. 18. These notes will have the highest acceptance priority level;

•For the $350 million of notes due 2017, by reference to 125 bps over the 1.375% Treasury due Nov. 30, 2017. These notes will be given second priority; and

• For the $500 million of notes due 2016, by reference to 50 bps over the 1.375% Treasury due Nov. 30, 2017.

The early tender deadline is 5 p.m. ET on Dec. 18.

All notes validly tendered and not withdrawn before the early tender date having a higher priority level will be accepted before any tendered notes having a lower priority level.

All notes validly tendered after the early tender date having a higher priority will be accepted before any lower-priority notes tendered after the early tender date.

Notes validly tendered and not validly withdrawn before the early deadline will be given priority over all notes tendered after the early deadline.

The tender offer expires at 11:59 p.m. ET on Jan. 5, unless extended or earlier terminated.

Holders who tender after the early deadline will receive the tender consideration minus $30 per each $1,000 principal amount of notes.

Notes must be tendered in minimum principal amounts of $2,000; additional tendered sums must be in increments of $1,000.

The offer is not conditioned on a minimum principal amount of notes being tendered.

Deutsche Bank Securities (866 627-0391), BofA Merrill Lynch (888 292-0070) and Wells Fargo Securities (866 309-6316) are the dealer managers.

D.F. King & Co., Inc. (877 896-3192 or L3@dfking.com) is the tender agent and information agent.

L-3 is a New York-based contractor in command, control, communications, intelligence, surveillance and reconnaissance systems, aircraft modernization and maintenance and government services. It is also a provider of electronic systems used on military and commercial platforms.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.