L3Harris Technologies, Inc. (LHX, Financial) has announced the establishment of two new credit facilities aimed at bolstering its financial flexibility. On February 18, 2025, the company entered into a $2.5 billion, five-year senior unsecured revolving credit facility, replacing its previous $2 billion facility. This new agreement, facilitated by JPMorgan Chase Bank, N.A., allows L3Harris to borrow, prepay, and re-borrow amounts under specified conditions, with the maturity date set for February 18, 2030.
The new revolving credit facility offers L3Harris the ability to designate wholly-owned subsidiaries in the U.S., Canada, or the U.K. as borrowers, with obligations guaranteed by L3Harris. Interest rates for borrowings in U.S. Dollars are linked to the secured overnight funding rate (SOFR) plus an applicable margin, which varies based on the company's senior unsecured long-term debt ratings.
In addition to the revolving credit facility, L3Harris has also established a $500 million, 364-day senior unsecured revolving credit facility. This facility replaces a prior $1.5 billion facility and allows for borrowing under similar conditions, with all principal amounts due by February 17, 2026. The interest rates for this facility are also tied to the SOFR rate, with margins adjusted according to the company's debt ratings.
These strategic financial moves are designed to provide L3Harris with enhanced liquidity and flexibility to support its operations and growth initiatives. The company continues to maintain strong relationships with financial institutions, which have historically provided various financial services to L3Harris.
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