FALLS CHURCH, Va., May 28, 2013 /PRNewswire/ -- Northrop
Grumman Corporation (NYSE: NOC) announced today that it will redeem
for cash all of its then outstanding 3.70% Senior Notes due 2014
(the "2014 Notes") and all of its then outstanding 1.850% Senior
Notes due 2015 (the "2015 Notes" and, together with the 2014 Notes,
the "Notes") on June 27, 2013. Each
series of Notes will be redeemed at a price equal to the sum of (i)
100% of the principal amount outstanding, (ii) a "make-whole"
premium, which will be calculated three business days prior to the
redemption date in accordance with the Notes and the indenture
governing the applicable series of Notes, and (iii) accrued and
unpaid interest on the principal amount being redeemed to, but not
including, the redemption date. Northrop Grumman currently expects
the "make-whole" premiums to result in a one-time, pre-tax charge
of approximately $30 million in the
second quarter of 2013. As of the date of this press release,
$350 million aggregate principal
amount of the 2014 Notes and $500
million aggregate principal amount of the 2015 Notes were
outstanding.
Debt Offering
Northrop Grumman also announced that it has commenced an
underwritten offering of senior unsecured notes under its effective
shelf registration statement. Northrop Grumman expects to use the
net proceeds from the offering to redeem the Notes and for general
corporate purposes, including debt repayment, share repurchases,
pension plan funding, acquisitions and working capital.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBS
Securities Inc. and Wells Fargo Securities, LLC are serving as
joint book-running managers for the offering. Copies of the
preliminary prospectus supplement and the accompanying prospectus,
and when available the prospectus supplement, relating to the
offering may be obtained by calling Citigroup Global Markets Inc.
toll free at (800) 831-9146, J.P. Morgan Securities LLC collect at
(212) 834-4533, RBS Securities Inc. toll free at (866) 884-2071 and
Wells Fargo Securities, LLC toll free at (800) 326-5897. A
copy of these documents may also be obtained by visiting EDGAR on
the SEC website at www.sec.gov.
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.
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.
Northrop Grumman is a leading global security company providing
innovative systems, products and solutions in unmanned systems,
cyber, C4ISR, and logistics and modernization to government and
commercial customers worldwide. Please visit
www.northropgrumman.com for more information.
Note: Statements in this press release, other than statements of
historical fact, constitute "forward-looking" information within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "anticipate," "expect," "intend,"
"plan," "believe," "estimate," "guidance," "goal" and similar
expressions generally identify these forward-looking statements.
These forward-looking statements speak only as of the date when
made, and the Company undertakes no obligation to update or revise
any forward-looking statements after the date of this press
release. Forward-looking statements are not guarantees of future
performance and inherently involve a wide range of risks and
uncertainties that are difficult to predict. Actual results may
differ materially from those described or implied in these
statements based on a number of factors, including global economic
conditions, economic conditions in our industry, government fiscal
and budget policies, changes in interest rates and other market
conditions. A discussion of these risks and uncertainties is
contained in the Company's 2012 Annual Report on Form 10-K and the
company's other filings with the Securities and Exchange
Commission.
SOURCE Northrop Grumman Corporation