Lockheed Martin Corporation
) has commenced an offering for exchange of all its outstanding
debt securities for a new series of 4.07% notes due 2042 and an
additional cash amount.
The outstanding debt securities that will be exchanged are 7.00%
Debentures due 2023, 8.375% Debentures due 2024, 7.625%
Debentures due 2025, 7.75% Debentures due 2026, 8.50% Debentures
due 2029, 7.20% Debentures due 2036, 6.15% Notes due 2036, 5.50%
Notes due 2039, and 5.72% Notes due 2040.
Per the offer, the holders of each series of the old notes will
receive a specified principal amount of new notes for the series
of old notes tendered and accepted for each $1,000 principal
amount of outstanding old notes tendered and accepted along with
an additional cash amount.
The total exchange consideration also includes an early
participation payment payable in additional principal amount of
new notes only to holders, who tender their old notes on or prior
to November 28, 2012, subject to extension.
The exchange offer is subject to certain conditions. The minimum
condition that the company has to comply is to receive valid
tenders, not validly withdrawn, of enough old notes so that at
least $250,000,000 aggregate principal amount of the new notes
are issued in exchange for the old ones.
Unless extended or terminated, the exchange offer will expire at
the end of the day on December 12, 2012. The exchange offer is
being conducted upon the terms and subject to the conditions set
forth in the Offering Memorandum dated November 14, 2012 and the
related letter of transmittal.
Lockheed Martin Corporation posted third-quarter 2012 results in
October 2012. The company reported third-quarter 2012 earnings of
$2.26 per share, beating the Zacks Consensus Estimate of $1.85.
This was also higher than the year-ago quarterly earnings of
Cash and cash equivalents at the end of the third quarter of
2012 were $4.7 billion versus $3.6 billion at the end of fiscal
2011. Long-term debt fell to approximately $6.4 billion versus
$6.5 billion at the end of fiscal 2011.
It seems that the company is utilizing its liquidity position
well. Yesterday, Lockheed had announced the acquisition of
Chandler/May Inc., an unmanned aerial systems manufacturer.
Chandler/May, with facilities in Alabama and California, will
become part of Lockheed's Mission Systems & Sensors
Lockheed Martin's prudent acquisition of Chandler/May would
expand its expertise in the design, development, integration,
manufacturing, and support of fully integrated mission critical
systems for unmanned aerial systems ("UAS") and Command, Control,
Communications, Computers, Intelligence, Surveillance,
Reconnaissance ("C4ISR") missions.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
To read this article on Zacks.com click here.
Over the longer run, we expect the company to register a stable
performance driven by leveraged presence in the Army, Air Force,
Navy and IT programs. Also, shareholder return will continue to
be shored up by the company's focus on debt repayment, its
ongoing share repurchase program and the incremental dividend.
However, we are concerned about the budget deficits and political
uncertainty that make future defense budgets vulnerable to
cutbacks. The company presently retains a short-term Zacks #3
Rank (Hold) that corresponds with our long-term Neutral
recommendation on the stock.
Based in Bethesda, Maryland, Lockheed Martin is a global security
and aerospace company that is principally engaged in the
research, design, development, manufacture, integration and
sustainment of advanced technology systems, products and
The company mainly competes with
The Boeing Company
General Dynamics Corporatio