9th Sep 2020 08:29
(Alliance News) - BAE Systems PLC on Wednesday announced a private placement of debt notes.
The stock was up 0.1% in London in early morning trading at 513.60 pence a share.
The FTSE 100-listed defence, security and aerospace company said the issuance consists of USD1.00 billion aggregate principal amount of notes paying 1.9% interest per year and maturing in mid-February, 2031.
The London-headquartered company said it also will issue USD1.00 billion aggregate principal amount of notes paying 3.0% interest per year and maturing in mid-September 2050.
The net proceeds of the offering will be used by BAE to refinance up to USD1.93 billion in aggregate principal amount outstanding under the bridge loan facility agreement incurred to fund the acquisition of the Collins Aerospace Military Global Positioning System business.
The offering is expected to close on or about Tuesday next week.
Moody's Investors Service on Tuesday assigned a Baa2 rating to the new senior unsecured notes.
The company's long term issuer rating of Baa2 is unaffected by the potential USD2 billion issuance, Moody's noted. The ratings of BAE's subsidiaries will also remain unchanged, as will the Stable outlook.
By Evelina Grecenko; [email protected]
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