Leidos gets $300 million 364-day term loan at Libor plus 200 bps

By Wendy Van Sickle

Columbus, Ohio, June 18 – Leidos Holdings, Inc. and Leidos, Inc. as borrower entered into a credit agreement on Thursday with Mizuho Bank, Ltd. as administrative agent, providing for a $300 million 364-day term loan, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus 175 basis points to 225 bps, depending on credit ratings. Based on the borrower’s current ratings, interest is Libor plus 200 bps.

Mizuho, Bank of Nova Scotia, Sumitomo Mitsui Banking Corp. and U.S. Bank NA are the joint lead arrangers and bookrunners.

Bank of Nova Scotia is the syndication agent. Sumitomo and U.S. Bank are the documentation agents.

Proceeds and cash on hand were used to repay in full all indebtedness under Leidos’ term loan credit agreement dated as of Feb. 12, 2020 with Citibank, NA, as administrative agent.

Financial covenants require that the borrower maintains, as of the last day of each fiscal quarter beginning with the fiscal quarter ending June, a ratio of adjusted consolidated total debt to consolidated EBITDA of not more than 4.5 to 1.00 and a ratio of EBITDA to consolidated interest expense of not less than 3.50 to 1.00.

The financial services firm is based in New York.

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