SAIC has priced a $500 million private offering of senior unsecured notes due 2034, with proceeds intended mainly to refinance its 4.875% notes due 2028. The new financing is expected to close around Nov. 13, subject to customary conditions.
- Use of proceeds: SAIC plans to redeem all of its outstanding 2028 notes and pay offering fees and expenses. Any proceeds left over would go toward general corporate purposes.
- Maturity and ranking: The new notes will be senior unsecured obligations, ranking equally with SAIC’s other senior debt and ahead of any future subordinated debt. Existing and future domestic subsidiaries that guarantee SAIC’s credit agreement and certain other debt, including its 5.875% notes due 2033, will also guarantee the new notes.
- Offering terms: The notes are being sold privately to eligible institutional buyers and certain non-U.S. investors. The announcement does not specify the notes’ interest rate or the amount of the 2028 notes being redeemed.
The transaction is a planned refinancing: it would replace debt coming due in 2028 with new debt due in 2034. The amount of any proceeds remaining for general corporate purposes will depend on the redemption amount and offering costs.