Lockheed adjusts conversion price on floating-rate convertibles

By Susanna Moon

Chicago, June 1 - Lockheed Martin Corp. will change the conversion pricing on its $1 billion principal amount of outstanding floating-rate convertible senior debentures due 2033 to $73.25, according to a company press release.

The adjustment is effective June 4.

The change amounts to 13.6528 shares of common stock for each $1,000 original principal amount of debentures. The previous rate was 13.492 shares of common stock per $1,000 principal amount of debentures.

The cumulative adjustment is required, under terms of the indenture, because Lockheed's dividends exceeded the quarterly dividend threshold amount of $0.12 per share.

Lockheed Martin is a Bethesda, Md.-defense contracting company.

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