Sale of Vertex Investment Completed in December
WALTHAM, Mass., Dec. 10 /PRNewswire-FirstCall/ -- Raytheon Company
(NYSE: RTN) (the "Company") announced today the completion of its offers to
repurchase for cash any and all of the outstanding 6.30% Notes due 2005 (the
"6.30% Notes"), and the outstanding 8.20% Notes due 2006 (the "8.20% Notes").
The offers commenced on Tuesday, December 2, 2003, and expired at 5:00
p.m., New York City time, on Tuesday, December 9, 2003. As of the expiration
of the offers, assuming proper settlement of all transactions, the Company had
repurchased $316 million of the 6.30% Notes and $608 million of the 8.20%
Notes, representing approximately 72% and 76% of the aggregate outstanding
principal amounts, respectively. The Company expects to record a pre-tax
charge to earnings of approximately $77 million in the fourth quarter as a
result of repurchasing the 6.30% and 8.20% Notes.
The Company also announced the completion of the sale of $500 million of
4.85% Notes due 2011 and $200 million of Floating Rate Notes due 2005. The
Company intends to use the entire net proceeds from the sale of the notes to
reduce the amounts outstanding under the Company's senior corporate credit
facilities, including amounts drawn to purchase the notes tendered in response
to the cash tender offer.
Separately, as previously disclosed in the Company's Form 10-Q for the
third quarter 2003, the Company agreed to sell its investment in Vertex, the
Company's former aviation support business for at least $52 million. This
sale also closed in December and the Company received approximately $57
million in cash proceeds. Since the Company had recorded this investment at
zero, the proceeds received will be reflected as a gain in the fourth quarter.
There is litigation pending regarding the sale which may, but will not
necessarily, result in the Company receiving additional sale proceeds.
Raytheon Company (NYSE: RTN), with 2002 sales of $16.8 billion, is an
industry leader in defense, government and commercial electronics, space,
information technology, technical services, and business and special mission
aircraft. With headquarters in Waltham, Mass., Raytheon employs more than
76,000 people worldwide.
NOTE: The statements in this press release that are not historical
statements, are considered forward-looking statements within the meaning of
the federal securities laws. These statements are subject to risks,
uncertainties and other factors, many of which are beyond the Company's
control, which could cause the Company's actual performance to be materially
different from those expressed or implied by the statements. The Company
expressly disclaims a duty to provide updates to forward-looking statements,
and the estimates and assumptions associated with them, after the date of this
press release to reflect the occurrence of subsequent events, changed
circumstances or changes in the Company's expectations. Further information
regarding factors that could affect the Company's forward-looking statements
are reported in the Company's 2002 Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q filed with the Securities and Exchange
Commission (http://www.sec.gov).
Media Contact: Investor Relations Contact:
James Fetig Tim Oliver
781-522-5111 781-522-5141
SOURCE Raytheon Company
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Related links:
http://www.raytheon.com
CONTACT:
Media Contact: James Fetig, +1-781-522-5111,
or Investor Relations Contact: Tim Oliver, +1-781-522-5141, both
of Raytheon
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