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Leonardo DRS sets its IPO size & specs -- Washington Technology


By Ross Wilkers
Mar 15, 2021
Arlington, Virginia-headquartered defense electronics company Leonardo DRS has set the terms for its pending initial public offering, according to amended regulatory documents and a company statement filed Friday.
DRS’ Italian parent company Leonardo will offer public investors a 22 percent stake in the subsidiary, which could increase to 25.3 percent of the IPO’s underwriters exercise their option in full to purchase additional shares if investor demand outstrips the initial supply.
Approximately 31.9 million shares will be available at a price range of between $20.00 and $22.00 each, which would then raise equity of $638 million-to-$701.8 million. The midpoint of the share price range implies a nearly $3 billion market value Leonardo DRS would command. ....

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Leonardo upbeat on prospects despite Aerostructures troubles


3 Min Read
MILAN (Reuters) - Italian aerospace and defence group Leonardo is confident it will meet guidance this year on earnings, debt and cash flow despite bigger losses at its Aerostructures division, senior managers said on Wednesday.
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Aerostructures, which produces parts for civil airplanes, will continue to have lower orders from Boeing, which means the business will face bigger losses this year than in 2020.
The group will take action to cut around 1,000 jobs in the division as part of a restructuring, the management said, which prompted a reaction from trade unions, which asked for government support to safeguard Leonardo’s four production sites in southern Italy, which employ around 5,500 people in total. ....

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Italy's Leonardo forgave $300 million of U.S. unit DRS' debt ahead of IPO: filing


2 Min Read
MILAN (Reuters) - Italian aerospace and defence group Leonardo last year forgave $300 million of related-party debt of its DRS unit, which is now preparing for a listing on the NYSE, the unit said in a filing to the U.S. Securities and Exchange Commission.
After the transaction, New Jersey-based DRS recorded a fall in its total net debt to $427 million last year from $712 million in 2019, according to the filing.
The forgiven debt was part of a $2 billion credit agreement between Leonardo group’s 100% owned subsidiary US Holding and DRS and provided for a term loan maturing in 2022, paying a 7.5% interest rate. ....

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