SAIC prices $500M in senior notes, upsizing from $400M to refinance 2028 debt
What's the deal? Science Applications International Corp. (NASDAQ: SAIC) has priced $500 million in 6.75% senior notes due 2034, the defense contractor announced on November 2, 2026. The notes priced at 100% of principal, with closing expected on or about November 13.
Why now? SAIC plans to use the proceeds to redeem all of its outstanding 4.875% senior notes due 2028, pay fees, and fund general corporate purposes. The move extends the maturity of existing debt — classic liability management rather than fresh capital for expansion.
What's notable? The offering was upsized from a proposed $400 million at launch. The notes are senior unsecured obligations, guaranteed by qualifying domestic subsidiaries, and offered privately to qualified institutional buyers and non-US investors.
By the numbers: SAIC, headquartered in Reston, Virginia, posted second-quarter fiscal 2027 revenue of $1.88 billion, up 6.3% year over year, with operating income of $152 million. The company employs roughly 23,000 people across defense, space, intelligence, and civilian markets.
The signal: At $500 million, the raise sits near the top of comparable deals, in the 30th percentile by size. Having issued $500 million of 5.875% notes in 2025 to repay its credit facility, SAIC is methodically reshaping its debt stack — swapping near-term maturities for longer-dated paper at a higher coupon.
Read more: business.am-news.com
Image credit: Generated with Gemini
