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Lockheed Martin Corporation (NYSE:LMT), the $98.6 billion aerospace and defense giant, announced Monday it has completed the issuance and sale of $2 billion in senior unsecured notes in a public offering. According to InvestingPro data, the company operates with a moderate level of debt and maintains strong market presence as a prominent player in the Aerospace & Defense industry. The transaction includes $500 million of 4.150% notes due 2028, $750 million of 4.400% notes due 2030, and $750 million of 5.000% notes due 2035.
The notes were sold pursuant to an underwriting agreement dated July 23, 2025, with Citigroup (NYSE:C) Global Markets Inc., Credit Agricole (OTC:CRARY) Securities (USA) Inc., and J.P. Morgan Securities LLC acting as representatives of the underwriters. The offering was made under Lockheed Martin’s effective registration statement on Form S-3 and the accompanying prospectus supplement filed with the Securities and Exchange Commission.
According to the company’s statement, the 2028 notes will mature on August 15, 2028, the 2030 notes on August 15, 2030, and the 2035 notes on August 15, 2035. Interest on all series will be paid semi-annually in arrears on February 15 and August 15 of each year, beginning February 15, 2026.
Lockheed Martin may redeem the notes of any series in whole or in part at any time, subject to the redemption prices described in the prospectus supplement and the applicable note.
The notes were issued under an indenture dated April 18, 2023, between Lockheed Martin and U.S. Bank Trust Company, National Association, as trustee.
The company stated it intends to use the net proceeds from the offering for general corporate purposes, which may include the repayment of existing debt. The new issuance adds to Lockheed’s total debt of $21.6 billion, with current financial metrics showing a debt-to-equity ratio of 4.06 and a current ratio of 0.98.
This information is based on a statement included in Lockheed Martin’s filing with the Securities and Exchange Commission.
In other recent news, Lockheed Martin has secured two contracts totaling $61.7 million for work on the F-35 Joint Strike Fighter program, as announced by the U.S. Department of Defense. This includes a $33.4 million modification to a previous contract aimed at enhancing software development and systems engineering for Israel’s F-35 program. Furthermore, Lockheed Martin’s second-quarter earnings report revealed significant challenges, with earnings per share reported at $1.46, falling short of the consensus estimate of $6.39. The shortfall was attributed to substantial one-time charges, including a $950 million charge on a classified Aeronautics program and $665 million on two Sikorsky helicopter programs.
In response to these financial results, several analysts have adjusted their price targets for Lockheed Martin. Bernstein has lowered its price target to $467, RBC Capital to $440, and UBS to $453, all citing the impact of program charges and challenges. Despite these setbacks, Bank of America has noted the potential for growth in defense spending in the U.S. and Europe, which could benefit major defense contractors like Lockheed Martin. NATO allies have agreed to increase defense equipment spending, a move that Bank of America suggests could bolster the defense sector. These developments highlight the complex financial landscape facing Lockheed Martin as it navigates both opportunities and challenges.
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