Update: Northrop Grumman Plans Larger Debt Sale

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Northrop Grumman Inc. plans to sell up to $850 million in debt in two parts in order to repay older debt, finance acquisitions and for other corporate uses, according to regulatory filings and media reports.

Northrop said it may also buy back stock and fund pension obligations with the money. The filing followed the Los Angeles defense contractor’s release of second quarter earnings last week.

Industry analyst Informa Global Markets said in an early Monday report that the company likely will break the sale of $750 million in bond into $250 million of 5-year securities and $500 million of 10-year securities.

Bloomberg News later reported that Northrop had increased the debt sale to $850 million, adding $100 million more in 5-year notes, and could start selling the bonds as soon as today, according to its source.

Separately, Northrop said Monday that it won a follow-on contract, worth up to $43.5 million, to provide the U.S. Marine Corps’ topographic production capability systems with maintenance and other support services.

The company said that under the five-year extension it will help provide high-tech mapping battlefield intelligence to TPC commanders, with the work primarily taking place in Stafford, Va.

Northrop Grumman shares were down 58 cents, or 1 percent, to $43.30 in midday trading on the New York Stock Exchange.

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