Pentagon to Invest $1 Billion in L3Harris Missile Unit

The US Department of Defense is set to invest in L3Harris Technologies Inc.’s missile unit with a $1 billion convertible preferred security, tightening the direct links between the government and a major defense contractor.

Calling it a “first-of-its-kind proposed partnership,” L3 said the move will “significantly” increase capacity to build solid rocket motors for US missiles. The preferred security would automatically convert into common equity upon the unit’s planned IPO in the second half of the year, according to a statement on Tuesday.