Jones Lang LaSalle

DRS Technologies Sells $600 Million in Bonds

Parsippany-based DRS Technologies (NYSE: DRS) today announced the terms of its two-part $600 million bond offering, which was boosted in size by $25 million. The bond transaction consists of $350 million of 6-5/8% 10-year senior notes and $250 million of 7-5/8% senior subordinated notes due 2018.

The deal is expected to close at the end of this month, and is contingent upon the closing of the previously announced Engineered Support Systems acquisition. Bear Stearns was the sole book-running manager, while Wachovia Capital Markets served as joint lead manager.

DRS plans to use proceeds from the offering, plus part of its available cash and borrowings under an amended credit facility, to finance its purchase of Engineered Support Systems; pay down some of that company’s outstanding debt; and to pay related fees and expenses.

DRS, a defense technology company, makes a range of mission-critical systems. The company’s shares climbed $1.00 to $49.75 in afternoon trading. - Ki Kim