SAIC Sets $500 Million Offering for Future Growth and Innovation
SAIC's Strategic Approach to Financing
In a recent announcement, Science Applications International Corp. (NASDAQ: SAIC) revealed an important move to secure funding by pricing a significant $500 million offering in senior notes. This offering underscores the company's ongoing commitment to advancing technology across various sectors, including defense, space, and critical national imperatives.
Key Details of the Senior Notes Offering
The notes, which carry an interest rate of 5.875% and are due in 2033, were priced at their full principal amount. These senior unsecured obligations play a crucial role in SAIC's financial strategy and are intended to enhance their operational capabilities.
Purpose Behind the Offering
SAIC's management expressed a clear intention for using the proceeds derived from the offering of these notes. The immediate use of funds will be directed towards repaying existing indebtedness under their revolving credit facility, along with covering associated fees and expenses for the offering.
Empowering Corporate Growth
Beyond immediate debt repayment, any remaining funds will be directed towards vital corporate purposes. This includes investing in working capital, which is essential for nurturing ongoing growth, strategic ventures, and potential corporate transactions. This focus on capital management highlights SAIC's proactive approach toward maintaining a robust financial standing.
Investment and Market Considerations
The offering is made under exemptions that allow it to be sold to qualified institutional buyers and non-U.S. persons, emphasizing a strategic approach to investment. It’s worth noting that the notes have not been registered for public sale, highlighting the exclusive nature of this offering.
Understanding the Risks and Benefits
While the offering presents significant opportunities for SAIC, it’s vital for potential investors to understand the risk factors involved. The company has provided extensive disclosures regarding forward-looking statements, addressing uncertainties that may impact expected outcomes. Investors are encouraged to review these disclosures thoroughly to make informed decisions.
About Science Applications International Corp.
SAIC stands as a premier technology integrator known for its mission-driven focus. With a vast workforce of approximately 24,000, the company is dedicated to innovating and leveraging technology to address the critical needs of national security and other vital sectors. Their portfolio includes a diverse range of high-end solutions spanning mission IT, engineering services, and professional consultancy.
Commitment to National and Global Missions
The essence of SAIC's operations lies in its ability to integrate emerging technologies into critical missions. This capability ensures that their solutions are not only modernized but also timely and effective in serving national priorities. The company embodies a philosophy of being driven by a mission, united by purpose, and inspired by countless opportunities.
Contact Information
For inquiries regarding investor relations, Joe DeNardi is available at the following contact: joseph.w.denardi@saic.com. Media-related queries can be directed to Kara Ross, who can be reached at kara.g.ross@saic.com.
Frequently Asked Questions
What is the purpose of SAIC's $500 million offering?
The funds will be used for repaying debt, covering fees, and supporting corporate growth initiatives.
What is the interest rate on the senior notes?
The senior notes carry an interest rate of 5.875% and are due in 2033.
Who can purchase these senior notes?
The notes are offered to qualified institutional buyers and non-U.S. persons under specific exemptions.
How will SAIC utilize the remaining funds after debt repayment?
Remaining proceeds will support working capital and potential strategic projects for the company.
Where is SAIC headquartered?
SAIC is headquartered in Reston, Virginia and employs around 24,000 personnel focused on technology-driven missions.
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