LMT - Lockheed Martin prepares five-part bond sale to fund buybacks

Lockheed Martin ( NYSE: LMT ) on Wednesday filed a preliminary prospectus for a five-part bond sale to help fund the defense contractor’s stock buyback plan.

The offering of investment-grade bonds will raise $3.5 billion to $4 billion, a person familiar with the deal told Bloomberg News. The longest-term part of the offering is 41 years and may have a yield that’s 205 basis points above the Treasuries, the unnamed source said.

Lockheed yesterday increased its share repurchase plan by $14 billion, including a doubling of this year’s buybacks to $8 billion. The company reported adjusted earnings that beat Wall Street’s estimates.

Its stock jumped 8.7% on Tuesday for the biggest one-day gain since March 2020.

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