L-3 Communications to price $550 million of 10-year senior notes; pricing expected Tuesday

By Devika Patel

Knoxville, Tenn., Nov. 29 – L-3 Communications Corp. plans to sell $550 million of senior notes due 2026 (Baa3/BBB-), according to a 424B5 filing with the Securities and Exchange Commission. The deal will not grow in size and is expected to price Tuesday, according to a market source.

The notes are being talked at Treasuries plus 185 basis points.

The securities have a make-whole call until three months before maturity and then a par call.

BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to replenish the amount of cash used and the amount of revolving credit borrowings drawn, to repay $200 million of 3.95% senior notes that matured on Nov. 15, 2016 and to redeem all of the company’s $350 million 1.5% senior notes due 2017.

L-3 Communications 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.

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