Science Applications reduces term B to about $400 million, sets spread

By Sara Rosenberg

New York, Aug. 19 – Science Applications International Corp. downsized its senior secured covenant-light term loan B (Ba2) due May 4, 2022 to $400,633,562 from $532 million and set pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The reduction in the term loan B size is being done through a corresponding upsize of about $132 million to the company’s term loan A, the source said.

The term loan B still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Citigroup Global Markets Inc. is the lead arranger on the deal.

Proceeds will be used to reprice an existing term loan B from Libor plus 300 bps with a 0.75% Libor floor.

Closing is expected during the week of Aug. 22.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering, and enterprise information technology markets.

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