• News

Northrop Grumman says HII planning bond issue

Written by  

huntinglogoNorthrop Grumman (NYSE:NOC) today announced what it called “an important step toward an anticipated spin-off” of its shipbuilding business through wholly-owned subsidiray Huntington Ingalls Industries, Inc. (HII),

It said that HHI intends to offer up to $1.175 billion in aggregate principal amount of senior unsecured notes due 2018 and senior unsecured notes due 2021, subject to market conditions, in a private placement to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The offering is part of the financing for an anticipated spin-off of HII from Northrop Grumman. HII is also in discussions with lenders to arrange up to $650 million of senior secured revolving credit due 2016 and a senior secured term loan due 2016 of up to $600 million.  

“While any final decision remains subject to board approval,” said a press release, “the financing activities announced today are an important step toward an anticipated spin-off of HII from Northrop Grumman.”

In January the three major credit rating agencies rated Huntington Ingalls’ corporate credit rating as “non-investment grade,” a classification known as “junk.”

January 25, 2011

Categories: News Tags:

Leave a Reply