Benzinga | Feb 1, 2021 04:07PM EST

Northrop Grumman Announces $1.5B Debt Redemption

Northrop Grumman Corporation (NYSE:NOC) today announced that it will redeem for cash all of its outstanding 2.55% Senior Notes due October 2022 ("Notes") on March 24, 2021. The Notes will be redeemed at a "make-whole" premium price, calculated in accordance with the Notes and the indenture and supplemental indenture governing the Notes (the "Make-Whole Redemption"). Northrop Grumman currently expects the Make-Whole Redemption to result in a pre-tax charge of approximately $55 million in the first quarter of 2021, which is not contemplated in its 2021 financial guidance of January 28, 2021. As of the date of this press release, $1.5 billion aggregate principal amount of the Notes were outstanding.

Northrop Grumman solves the toughest problems in space, aeronautics, defense and cyberspace to meet the ever evolving needs of our customers worldwide. Our 97,000 employees define possible every day using science, technology and engineering to create and deliver advanced systems, products and services.