Northrop Grumman Prices $1 Billion Senior Notes Offering

Northrop Grumman Corporation has priced a $1 billion underwritten public offering of senior unsecured notes, divided evenly between $500 million of 4.650% notes due in 2030 and $500 million of 5.250% notes due in 2035. The proceeds from this offering are intended for general corporate purposes, including the repayment of existing debt such as its 7.875% and 7.750% senior notes due in 2026, share repurchases, and working capital enhancement. The offering is expected to close on May 29, 2025, pending customary closing conditions. Analysts view the company favorably, with a consensus price target suggesting a potential upside of approximately 14% to 17%, reflecting optimism about Northrop Grumman’s strategic initiatives and financial health. The company maintains a strong financial position, highlighted by a moderate debt-to-equity ratio and a long history of dividend payments and increases. The offering process is being managed by major underwriters and is conducted under a previously filed effective shelf registration with the SEC.