L3Harris Technologies [LHX] is to spin off its newly created missile solutions business as a new company with a $1 billion infusion from the Pentagon's Industrial Base Analysis and Sustainment (IBAS) program in order to ramp up the production of solid rocket motors (SRMs), according to the Defense Department and the company. The Pentagon will receive convertible preferred equity for the funding--an arrangement which typically means the convertible preferred equity holder receives a predetermined number of shares when the company…
