Northrop Grumman Corp. said Oct. 10 that it priced an $8.25 billion underwritten public offering of senior unsecured notes, the net proceeds of which will help finance the company's acquisition of Orbital ATK Inc.
The notes include $1.0 billion of 2.08% senior notes due 2020, $1.5 billion of 2.55% senior notes due 2022, $1.5 billion of 2.93% senior notes due 2025, $2.0 billion of 3.25% senior notes due 2028, and $2.25 billion of 4.03% senior notes due 2047.
The offering is expected to close Oct. 13, subject to the satisfaction of customary closing conditions.
If the Orbital ATK acquisition is not completed on or before Dec. 17, 2018, or if the merger agreement relating to the deal is terminated prior to the said date, Northrop Grumman said it will be required to redeem the 2020 notes, 2022 notes, 2025 notes and 2047 notes.
Northrop Grumman said that if the acquisition is not completed, it expects to use the net proceeds from the offering of the 2028 notes for general corporate purposes, including debt repayment, share repurchases, pension plan funding, acquisitions and working capital.