Lockheed Martin Corporation (NYSE:LMT), with a market capitalization of $119.38 billion, has completed the sale of $1 billion in senior unsecured notes, the company disclosed in a recent SEC filing. The offering, which took place today, comprised $600 million of 4.700% notes due in 2031 and $400 million of 5.200% notes maturing in 2055. According to InvestingPro data, the aerospace giant operates with a moderate level of debt, maintaining a healthy debt-to-capital ratio of 0.14.
The aerospace and defense giant, headquartered in Bethesda, Maryland, stated that the interest on the 2031 notes will be paid semi-annually starting June 15, 2025, while the interest on the 2055 notes will commence on February 15, 2025. The company may redeem the notes at any time before maturity at the redemption prices detailed in the final prospectus supplement. With an EBITDA of $10.23 billion in the last twelve months, Lockheed Martin demonstrates robust operational performance.
The 2055 notes are an addition to an existing series, with the company having previously issued $650 million of the same 5.200% notes due in 2055. These new notes are identical in terms except for the issuance date and issue price and will be traded interchangeably with the initial notes issued under the same CUSIP number.
Lockheed Martin indicated that the net proceeds from the note offering would be used for general corporate purposes, which include funding its pension plans. The transaction was carried out under an underwriting agreement with Wells Fargo (NYSE:WFC) Securities, LLC, BofA Securities, Inc., and Goldman Sachs (NYSE:GS) & Co. LLC.
This financial move comes as Lockheed Martin continues to manage its capital structure and address its long-term financial obligations. The company's financial health score is rated as "FAIR" by InvestingPro, which offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks. The information provided in this article is based on a press release statement filed with the SEC. Notably, Lockheed Martin has maintained dividend payments for 41 consecutive years, with a current dividend yield of 2.57%.
In other recent news, Lockheed Martin, a prominent player in the Aerospace & Defense industry, has been making significant strides in various areas. The company's earnings and revenue results have been strong, with a reported revenue of $71.3 billion over the last twelve months. Lockheed Martin has also surpassed estimated third-quarter earnings per share of $6.50, reporting an EPS of $6.80, and has increased its full-year 2024 revenue guidance by 0.4% to approximately $71.25 billion.
In terms of mergers and acquisitions, Lockheed Martin recently completed the acquisition of Terran Orbital, a modular spacecraft manufacturer. This strategic move aims to enhance the company's space capabilities through Terran Orbital's innovative technologies and agile manufacturing processes. In addition, the company has been awarded a significant $245 million contract extension by the U.S. Naval Sea Systems Command for the MK-48 Mod 7 Guidance and Control program.
Analyst notes indicate that Jefferies maintained a Hold rating on Lockheed Martin but reduced the company's price target from $590.00 to $580.00 following a third-quarter report that fell short of market expectations. In other company news, Lockheed Martin announced the resignation of Jeh C. Johnson from its Board of Directors, a change that has drawn attention from stakeholders.
In a series of demonstrations scheduled throughout 2025, Lockheed Martin will showcase its MATRIX™ flight autonomy system using an Optionally Piloted UH-60 Black Hawk® helicopter. The aim is to evaluate how autonomous aircraft can support Marine operations by providing resupply capabilities in contested environments.
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