The Space Investor - 🚀 L3Harris Acquires Aerojet

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• The company found its new owner, following the terminated acquisition from Boeing ($BA) in February of this year. The deal equates to $58.00 per share and is inclusive of net debt.
   
• The acquisition will be funded with existing cash and the issuance of new debt by L3. The deal is expected to close in 2023, subject to required regulatory approvals and clearances and other customary closing conditions.
   
• Market Reaction: LHX -3.6%; AJRD 1.3%

• The move of the launch window was driven by weather and the additional time that NASA and the FAA required to complete essential regulatory documentation for launch.
   
• The company also provided an update on the effect to prior financial guidance. Revenue recognition will take place in Q1’23 and the Q4’22 revenue estimate (from Nov. 9) of $51-54M is now $46-47M.

• The principal amount is convertible into shares of the company’s common stock or other qualified securities with an annual interest rate of 6.0%, payable in cash semi-annually with a maturity date of November 4, 2024.
   
• The company also received the U.K.’s first orbital launch license this week.

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