SAIC Launches $500 Million Senior Notes for Strategic Growth

SAIC Announces Pricing for New Senior Notes Offering

Science Applications International Corp. (NASDAQ: SAIC), a leading technology integrator, has recently made headlines by pricing an offering of $500 million in senior notes. This financial move aims to bolster its capabilities in various sectors including defense, space, and intelligence by enhancing their operational resources.

Details of the Senior Notes

The new senior notes, set at a rate of 5.875%, are due in 2033. These notes were priced at their principal amount, indicating strong market demand and confidence in SAIC’s growth potential. The anticipated closing date for this offering is shortly approaching, allowing SAIC to utilize these funds effectively in the near future.

Utilization of Proceeds

SAIC plans to leverage the proceeds from this offering to pay off existing debt under its revolving credit facility. This strategic move not only strengthens their balance sheet but also positions the company for sustainable growth. Furthermore, part of the net proceeds will be allocated toward estimated fees associated with the offering and supporting general corporate purposes, including working capital for growth initiatives and potential investments in strategic projects.

Investment Opportunity and Market Strategy

The senior notes are being offered to qualified institutional buyers and non-U.S. persons outside the United States under specific exemptions from registration as per the Securities Act of 1933. This approach caters to experienced investors familiar with the nuances of private placements, reflecting SAIC’s continuous movement towards strengthening investor relationships and expanding their financial flexibility.

Company Overview and Vision

As one of the premier Fortune 500 companies, SAIC focuses on advancing technology solutions that meet the pivotal needs of our nation. Their extensive portfolio covers essential areas such as mission IT, engineering services, and secure professional services, showcasing their commitment to integrating advanced technology into national defense and civil applications. With a workforce of approximately 24,000 employees based in Reston, Virginia, SAIC operates on principles of mission-driven performance while being united by a clear purpose to leverage opportunities in the evolving tech landscape.

Commitment to Innovation and Growth

SAIC is at the forefront of digital transformation, emphasizing the importance of technology in modernizing critical operations. The issuance of these senior notes aligns with their mission to invest in growth areas and solidify their standing in a dynamic global marketplace. As they continue to navigate complex challenges and opportunities, SAIC remains focused on delivering exceptional value to its investors and stakeholders.

Conclusion

The announcement of the senior notes offering signifies a proactive step by SAIC in maintaining its competitive edge and enhancing its financial position. As they prepare to close this offering, stakeholders can look forward to the potential impacts this may have on the company’s future trajectory and overall mission.

Frequently Asked Questions

What are the senior notes offered by SAIC?

The senior notes are a financial instrument through which SAIC aims to raise $500 million at a fixed interest rate of 5.875%, due in 2033.

How will SAIC use the proceeds from the notes?

SAIC intends to use the net proceeds to repay existing debt, cover offering expenses, and fund corporate initiatives.

Who can invest in the senior notes?

The notes are available to qualified institutional buyers and to non-U.S. persons outside of the United States under specific exemptions.

What is SAIC's business focus?

SAIC focuses on technology solutions that support defense, intelligence, and civil sectors, emphasizing mission IT and engineering services.

Where is SAIC headquartered?

SAIC is headquartered in Reston, Virginia, employing around 24,000 individuals and striving for innovation and excellence in service delivery.

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