Published on 8/1/2023 in the Prospect News Investment Grade Daily.
New Issue: Booz Allen prices $650 million 5.95% 10-year notes at 203 bps spread
By Wendy Van Sickle
Columbus, Ohio, Aug. 1 – Booz Allen Hamilton Inc. priced a $650 million issue of 5.95% 10-year senior notes (Baa3/BBB-) at 99.044 to yield 6.079% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by parent Booz Allen Hamilton Holding Corp.
The notes priced at a spread of 203 basis points over Treasuries.
BofA Securities, Inc. and J.P. Morgan Securities LLC are leading the sale. Goldman Sachs & Co. LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC are also joint bookrunners.
Proceeds will be used to repay borrowings outstanding under the company’s revolving credit facility and for general corporate purposes.
Based in McLean, Va., Booz Allen provides management and information technology consulting services.
| Issuer: | Booz Allen Hamilton Inc.
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| Guarantor: | Booz Allen Hamilton Holding Corp.
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| Amount: | $650 million
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| Issue: | Senior notes
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| Maturity: | Aug. 4, 2033
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| Joint bookrunners: | BofA Securities, Inc, J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Capital One Securities, Inc., Fifth Third Securities Inc., Huntington Securities, Inc., ICBC Standard Bank plc, M&T Securities, Inc., MUFG Securities Americas Inc., Siebert Williams Shank & Co., LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and WauBank Securities LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Debevoise & Plimpton LLP
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| Counsel to underwriters: | Latham & Watkins LLP
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| Coupon: | 5.95%
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| Price: | 99.044
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| Yield: | 6.079%
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| Spread: | 203 bps
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| Call option: | Make-whole call at Treasuries plus 35 bps until May 4, 2033, then a par call
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| Change-of-control put: | At 101
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| Trade date: | Aug. 1
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| Settlement date: | Aug. 4
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| Ratings: | Moody's: Baa3
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| S&P: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Cusip: | 09951LAC7
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