US defence and aerospace giant Lockheed Martin has secured a new US$1.5bn five-year revolver after making a series of bolt-on acquisitions to bolster its technological expertise.
The unsecured debt replaces an existing five-year facility of the same…
US defence and aerospace giant Lockheed Martin has secured a new US$1.5bn five-year revolver after making a series of bolt-on acquisitions to bolster its technological expertise.
The unsecured debt replaces an existing five-year facility of the same size that was due in 2016, and was still undrawn when it was terminated last week.
Lockheed’s new revolver has a sublimit of up to US$300m available for the issuance of letters of credit, and the facility can be upsized by US$500m under the discretion of lenders.
The main lenders are: JP Morgan, as syndication agent, Citibank, Credit Agricole and Mizuho, as documentation agents, and BofA Merrill Lynch as administrative agent. They each committed US$120m.
Borrowings bear interest on a base rate of interest in effect, a Eurodollar rate which is periodic and based on LIBOR, or a rate determined by a competitive bidding process. The base rate of interest is the highest of BofA’s prime rate, the Federal Funds rate plus 0.50%, or one-month LIBOR plus 1%.
The facility also requires Lockheed to keep under a leverage ratio of 65%.
The other banks on the deal are The Bank of Tokyo-Mitsubishi UFJ, RBS, US Bank National Association, Wells Fargo, ANZ, Barclays, Goldman Sachs, Lloyds, Morgan Stanley, Royal Bank of Canada, State Street Bank and Trust Company, Credit Industriel et Commercial, Riyad Bank Houston Agency, Sumitomo Mitsui Banking Corporation, Toronto Dominion, The Northern Trust Company and Unicredit.
Apart from this August so far, Lockheed has announced an acquisition a month in the space field since May 2014.
It bought information collection and processing specialist Zeta Associates last month for an undisclosed sum to enhance its space and intelligence, surveillance and reconnaissance portfolio. The month before that it acquired Deposition Sciences, a provider of thin film coatings for applications including space and satellite apparatus. And at the end of May it agreed to buy the pre-launch satellite services unit of local space hardware developer Astrotech for US$61m.
