Northrop Grumman Prices $750 Million Debt Offering and Announces Debt Redemption
November 28 2016 - 5:52PM
Northrop Grumman Corporation (NYSE:NOC) announced today that it has
priced a $750 million underwritten public offering of 3.20% senior
unsecured notes due Feb. 1, 2027. Northrop Grumman expects to use
the net proceeds from the offering for general corporate purposes,
including debt repayment, pension plan funding and working capital.
The offering is expected to close on Dec. 1, 2016, subject to
customary closing conditions. When available, copies of the
prospectus supplement and the accompanying base prospectus related
to the offering may be obtained by calling Goldman, Sachs & Co.
at (866) 471-2526 and J.P. Morgan Securities LLC collect at (212)
834-4533. A copy of these documents may also be obtained by
visiting EDGAR on the Securities and Exchange Commission website at
www.sec.gov.
Northrop Grumman Corporation also announced that its wholly
owned subsidiary, Northrop Grumman Systems Corporation, will redeem
for cash all of its outstanding 6.75% Senior Notes due April 2018
(“the Notes”) on Dec. 28, 2016. The Notes will be redeemed at
a “make-whole” premium price, calculated in accordance with the
Notes and the indenture and supplemental indentures governing the
Notes (the “Make-Whole Redemption”). Northrop Grumman currently
expects the Make-Whole Redemption to result in a pre-tax charge of
approximately $15 million in the fourth quarter of 2016, which is
contemplated in the company’s 2016 financial guidance. As of the
date of this press release, $200 million aggregate principal amount
of the Notes were outstanding.
This press release shall not constitute an offer to sell
or the solicitation of an offer to buy the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under
the securities laws of any such jurisdiction.
The securities are being offered pursuant to an
effective shelf registration statement previously filed with the
Securities and Exchange Commission, and a prospectus supplement and
accompanying prospectus filed with the Securities and Exchange
Commission as part of the shelf registration
statement.
Northrop Grumman is a leading global security company providing
innovative systems, products and solutions in autonomous systems,
cyber, C4ISR, strike, and logistics and modernization to customers
worldwide.
Note: Statements in this press release, other than statements of
historical fact, constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as “expect,” “intend,” “may,” “could,” “plan,”
“project,” “forecast,” “believe,” “estimate,” “guidance,”
“outlook,” “anticipate,” “trends,” “goals” and similar expressions
generally identify these forward-looking statements.
Forward-looking statements include, among other things, statements
relating to our future financial condition, results of operations
and cash flows. Forward-looking statements are based upon
assumptions, expectations, plans and projections that we believe to
be reasonable when made, but which may change over time. These
statements are not guarantees of future performance and inherently
involve a wide range of risks and uncertainties that are difficult
to predict. Specific risks that could cause actual results to
differ materially from those expressed or implied in these
forward-looking statements include, but are not limited to, those
identified and discussed more fully in the section entitled “Risk
Factors” in our 2015 Annual Report on Form 10-K.
Contact:
Randy Belote (Media)
703-280-2720
randy.belote@ngc.com
Steve Movius (Investors)
703-280-4575
steve.movius@ngc.com
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