L3Harris Technologies establishes $2.4 billion 364-day revolver

By Wendy Van Sickle

Columbus, Ohio, March 16 – L3Harris Technologies established a $2.4 billion 364-day senior revolving credit facility on March 10, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA was the administrative agent.

Proceeds of the initial funding under the credit agreement are required to be used to finance a portion of the purchase price for L3Harris’ acquisition of Aerojet Rocketdyne Holdings, Inc., which is expected to occur in 2023, and thereafter may be used for working capital purposes. If the Aerojet acquisition has not been consummated within three business days of the date of the initial funding, L3Harris is required to repay the entire principal amount of all such loans and accrued interest.

Interest will be SOFR plus a 10 basis points credit spread adjustment and a margin of 100 bps to 175 bps. The initial margin is 112.5 bps, with variations based on the company’s ratings.

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

L3Harris is a Melbourne, Fla.-based aerospace and defense technology company. Aerojet is an El Segundo, Calif.-based aerospace and defense company.

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