L3Harris Technologies Inc.'s Senior Unsecured Notes Rated 'BBB'

NEW YORK (S&P Global Ratings) March 11, 2024--S&P Global Ratings today assigned its 'BBB' issue-level rating to L3Harris Technologies Inc.'s senior unsecured notes offering. We expect L3Harris will use proceeds from the debt issuance to repay a portion of its term loan due 2025. The company entered into the term loan in 2022 to fund its $1.97 billion acquisition of Viasat Tactical Data Links (TDS). We anticipate that after the notes offering, management will prioritize repaying debt, which is at elevated levels following the acquisition of TDS and Aerojet Rocketdyne for $4.7 billion in 2023. At the end of the year, the company's capital structure included $1.6 billion in commercial paper (CP), $350 million of debt maturing in 2024, and

...March 11, 2024 NEW YORK (S&P Global Ratings) March 11, 2024--S&P Global Ratings today assigned its '###' issue-level rating to L3Harris Technologies Inc.'s senior unsecured notes offering. We expect L3Harris will use proceeds from the debt issuance to repay a portion of its term loan due 2025. The company entered into the term loan in 2022 to fund its $1.97 billion acquisition of Viasat Tactical Data Links (TDS). We anticipate that after the notes offering, management will prioritize repaying debt, which is at elevated levels following the acquisition of TDS and Aerojet Rocketdyne for $4.7 billion in 2023. At the end of the year, the company's capital structure included $1.6 billion in commercial paper (CP), $350 million of debt maturing in 2024, and $600 million maturing in 2025. We forecast that L3Harris will generate more than $1 billion of cash flow after capital expenditures and dividends in 2024, providing capacity to reduce debt. Proceeds from divestitures, including approximately...

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