Aerospace and defense operator L-3 Communications Holdings Inc. (LLL) announced that its unit, L-3 Communications Corporation, has started a process to redeem its $650 million of 5.875% Senior Subordinated Notes due in 2015.

March 9, 2011, has been fixed by L-3 Communications’ unit for redemption of the notes, at a price of 101.958% of the principal amount, plus the accrued and unpaid interest till that date. The Bank of New York Mellon has been appointed as the paying agent and the registered holders will have to present their notes to the bank on or before March 9, 2011 for redemption.

L-3 Communicationsrecently issued $650 million of 4.95% Senior Notes due in February 15, 2021. The company will utilize the net proceeds of the issue and some portion of its cash in hand to redeem the 5.875% Senior Subordinated notes. Cash and cash equivalents of the company as of December 31, 2010 were $607 million.

Long-term debts at L-3 Communications as of December 31, 2010 were $3.4 billion. In May last year, the company issued $800 million of 4.75% senior notes due in July 15, 2020 and utilized the proceeds to redeem its $400 million each 6.125% senior subordinated notes due 2013 and 2014.

L-3 Communications expects its earnings per share for 2011 to be in the range of $8.40 to $8.55. The Zacks Consensus Estimates for first quarter 2011, fiscal year 2011 and fiscal year 2012 currently stand at $1.86 per share, $8.45 per share and $8.85 per share, respectively.

L-3 Communications presently retains a Zacks #3 Rank (short-term Hold rating). At par with L-3 Communications, its peers Raytheon Co. (RTN) and Lockheed Martin Corporation (LMT) completed fiscal 2010 on a strong note. The financial performance of these defense operators comfortably surpassed their corresponding Zacks Consensus expectations.

Based in New York, L-3 Communication is a leading supplier of secure communications, simulation, training systems, avionics, ocean and telemetry products, space and wireless products, and microwave components, which are used in a number of aerospace and defense platforms.

 
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