L3Harris Technologies establishes $2.25 billion term loan facility

Chicago, Nov. 28 – L3Harris Technologies established a $2.25 billion three-year senior term loan facility with a Nov. 22 closing date, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA was the administrative agent.

The maturity date is Nov. 21, 2025.

The agreement provides for term loans in up to two separate draws no later than June 30, 2023.

Interest will be SOFR plus a 10 basis points credit spread adjustment and then 112.5 bps to 187.5 bps. The initial margin is 125 bps, with variations based on the company’s ratings.

An unused commitment fee will be between 9 bps and 25 bps, starting Jan. 17, 2023. Initially, the commitment fee is 11 bps.

Prepayments may be made, but are mandatory from the proceeds of any new debt with certain types of debt delineated in the agreement.

JPMorgan, BofA Securities, Inc. Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp. and TD Securities (USA) LLC are the joint lead arrangers and joint bookrunners.

Citibank, NA and Bank of Nova Scotia were also listed as joint lead arrangers.

Bank of America, NA, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp. and Toronto-Dominion Bank, New York Branch are the co-syndication agents.

Citibank, NA and Bank of Nova Scotia were the co-documentation agents.

Proceeds will be used to finance the acquisition of Viasat, Inc’s tactical data links product line and to repay all amounts under the company’s $250 million floating-rate notes due 2023 and for general corporate purposes in an amount up to $40 million.

L3Harris is a Melbourne, Fla.-based aerospace and defense technology company. The Tactical Data Links product line is integrated on military aircraft, ground vehicles, surface vessels and operating bases, enabling warfighters across multiple domains to securely share voice and data communications.

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