Science Applications International Prices $500 Million of 6.75% Senior Notes Due 2034

What happened

Science Applications International priced $500 million of 6.75% senior notes due 2034 at 100% of principal, expected to close around November 13, 2026. Net proceeds will redeem all its outstanding 4.875% senior notes due 2028 and cover offering costs.

Confirmed

Global impact / market context

The company is replacing lower-interest 2028 debt with higher-interest 2034 debt, which raises future interest costs. That can reduce cash available for other uses and makes the company's borrowing costs more sensitive to how investors price its risk.

Analyst inference

The new notes are sold only to qualified institutional buyers and certain non-U.S. investors, meaning large professional investors, and are not registered under securities laws. That restricts who can buy them and can affect how easily the debt trades.

Analyst inference

What to watch

1. The offering must close and the 2028 notes redemption is conditioned on completion of the offering, so the refinancing depends on the sale finishing as planned. Confirmed
2. Company plans to use net proceeds to redeem all 4.875% senior notes due 2028 and cover offering costs, with any remainder for general corporate purposes. Proposed
3. Guarantees from certain domestic subsidiaries could matter because they link the new notes to more of the company's assets and affect recovery for lenders if problems arise. Analyst inference

Evidence

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