By Cristal Cody
Tupelo, Miss., Oct. 5 – Leidos Holdings Inc. priced $1 billion of 2.3% senior notes due Feb. 15, 2031 (Baa3/BBB-) on Monday at a spread of 160 basis points over Treasuries, according to a market source and a news release.
Initial price talk was in the Treasuries plus 187.5 bps area.
BofA Securities Inc., Citigroup Global Markets Inc. and MUFG were bookrunners of the Rule 144A and Regulation S offering.
The notes will be guaranteed by Leidos Holdings, Inc.
Proceeds will be used for general corporate purposes, including, to pay the balance on the company’s 364-day term loan facility and a portion of the balance on its five-year term loan facility.
Leidos is a Reston, Va.-based defense, aviation, information technology and engineering company.
| Issuer: | Leidos Holdings Inc.
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| Guarantor: | Leidos Holdings, Inc.
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| Amount: | $1 billion
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| Description: | Senior notes
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| Maturity: | Feb. 15, 2031
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| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and MUFG
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| Coupon: | 2.3%
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| Spread: | Treasuries plus 160 bps
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| Trade date: | Oct. 5
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| Settlement date: | Oct. 8
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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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| Price guidance: | Treasuries plus 187.5 bps area
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