Rome, 03 November 2022 18:18 Inside Information
Taking advantage of current market conditions
Optimising balance sheet, with the best use of the resources deriving from the reorganization activities in the US
Paying down the most expensive debt instrument outstanding
Leonardo announced today that its subsidiary Leonardo US Holding, LLC (the “Company”), fully owned directly and indirectly, has elected to redeem in full its 7.375% Notes due 2039 (the “2039 Notes”), of which a principal amount of $ 123,626,000 is outstanding, and its 6.25% Notes due 2040 (the “2040 Notes” and, together with the 2039 Notes, the “Securities”), of which a principal amount of $181,457,000 is outstanding (the “Redemption”).
Alessandro Profumo, Leonardo CEO, stated: “Through the redemption of our bonds issued in the US, we are using resources coming from the US corporate, business and financial reorganization to optimise our debt position, taking advantage of current market opportunities deriving from higher interest rates in the US and paying down the most expensive debt instruments on our balance sheet, with interest costs of $20mil per annum till 2039-2040. We are also continuing to look for further opportunities”.
The Company today gave notice to holders of its election to redeem in full the entire outstanding principal amount of the Securities in accordance with the terms of the Securities and the Indenture between the Company and The Bank of New York Mellon (as trustee) under which the Securities were issued.
The Securities will be redeemed in full on December 15, 2022 (the “Redemption Date”) at a redemption price equal to the greater of (i) 100% of the principal amount, respectively, of the 2039 Notes and of the 2040 Notes and (ii) the sum of the present values of the remaining scheduled payments of principal amount and interest, respectively, on the 2039 Notes and on the 2040 Notes (exclusive of accrued interest to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360 day year consisting of twelve 30 day months) at the Treasury Rate (as defined in the terms of the Securities) plus 50 points, in the case of the 2039 Notes, and 35 points, in the case of the 2040 Notes, plus, in each case, accrued interest to the Redemption Date.
On and after the Redemption Date, the Securities will no longer be deemed outstanding, interest on the Securities will cease to accrue, and all rights of the holders of the Securities will terminate, except for the right to receive such redemption payment upon surrender of the Securities.
The Company will announce the Redemption Price prior to the Redemption Date.
About Leonardo US Holding, LLC
The Company is a Delaware limited liabillity company whose principal offices are located at 251 Little Falls Drive, Wilmington, DE 19808, United States of America. It is a wholly-owned - directly and indirectly - subsidiary of Leonardo S.p.a.
This announcement contains forward-looking statements based on estimates and assumptions.
Forward-looking statements include, among other things, statements concerning the business, future financial condition, results of operations and prospects of the Company and its affiliates. These statements usually contain the words "believes", "plans", "expects", "anticipates", "intends", "estimates" or other similar expressions. For each of these statements, you should be aware that forward-looking statements involve known and unknown risks and uncertainties. Although it is believed that the expectations reflected in these forward-looking statements are reasonable, there is no assurance that the actual results or developments anticipated will be realized or, even if realized, that they will have the expected effects on the business, financial condition, results of operations or prospects of the Company and its affiliates.
These forward-looking statements speak only as of the date on which the statements were made, and no obligation has been undertaken to publicly update or revise any forward-looking statements made as a result of new information, future events or otherwise, except as required by applicable laws and regulations. The Company undertakes no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.