Leidos accepts 78.31% of 2.95% notes due 2023 from tender offer

Chicago, Feb. 24 – Leidos Holdings, Inc. wholly owned subsidiary Leidos, Inc. announced the results of its any-and-all tender offer for its $500 million outstanding 2.95% senior notes May 15, 2023 (Cusip: 52532XAB1), according to a press release.

Noteholders tendered, and the company is accepting, $391,572,000 of the notes, or 78.31% of the principal amount outstanding.

The accepted amount does not include any notes tendered via guaranteed delivery procedures.

The company will pay a total consideration of $995.77 per $1,000 principal amount of notes.

The offer expired at 5 p.m. ET on Feb. 23.

The purchase price was calculated based on the 1.75% U.S. Treasury due May 15, 2023 and a fixed spread of 0 basis points. Pricing was 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.

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.

The company priced $750 million of new notes on Feb. 16. Settlement of the new notes is planned for Feb. 28.

The tender offer was announced on Feb. 16.

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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