Leidos launches any-and-all tender offer for 2.95% notes due 2023

By Marisa Wong

Los Angeles, Feb. 16 – Leidos Holdings, Inc. wholly owned subsidiary Leidos, Inc. has begun an offer to purchase for cash any and all of its outstanding $500 million 2.95% senior notes May 15, 2023 (Cusip: 52532XAB1), according to a press release.

The offer will expire at 5 p.m. ET on Feb. 23.

The purchase price will be calculated based on the 1.75% U.S. Treasury due May 15, 2023 and a fixed spread of 0 basis points. Pricing will be determined at 2 p.m. ET on Feb. 23.

The company will also pay accrued interest to but excluding the settlement date, which is expected to be Feb. 28.

Tenders may be withdrawn at any time prior to the earlier of the expiration time and, if the offer is extended, the 10th business day after the start of the offer. Tenders may also be withdrawn at any time after the 60th business day after the start of the offer if for any reason the offer has not been completed by that date.

The tender offer is conditioned on Leidos completing an offering of new senior notes, proceeds of which will be used to purchase the 2023 notes under the tender offer and to redeem any 2023 notes remaining outstanding after the tender offer. The new notes offering is not, however, conditioned on completion of the tender offer.

BofA Securities, Inc. (980 387-3907 or 888 292-0070) and Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) are dealer managers for the tender offer.

Global Bondholder Services Corp. (https://www.gbsc-usa.com/leidos/; 212 430-3774 or 855 654-2014; contact@gbsc-usa.com) is the depositary agent and information agent.

Leidos is a technology, engineering and science company for the defense, intelligence, civil and health markets.

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