Leidos Announces Pricing of Senior Unsecured Notes Offering
On October 5, 2020, Leidos (NYSE: LDOS) announced the pricing of $1 billion in senior unsecured notes, with a 2.300% interest rate due in 2031. These notes will be fully guaranteed by Leidos and are intended for qualified institutional buyers. Proceeds will be used for general corporate purposes, including debt repayment. The offering is expected to close on October 8, 2020, subject to standard conditions. This issuance strengthens Leidos' financial position while allowing it to manage its loan facilities more effectively.
- Pricing of $1 billion senior unsecured notes at 2.300% due 2031.
- Proceeds to be used for paying off existing debt, enhancing liquidity.
- Notes will be structurally subordinated to existing and future subsidiary liabilities.
RESTON, Va., Oct. 5, 2020 /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS) ("Leidos"), a FORTUNE® 500 science and technology leader, today announced that its wholly-owned subsidiary, Leidos, Inc. (the "Issuer"), priced
The offering is expected to close on Oct. 8, 2020, subject to customary closing conditions.
The Issuer intends to use the net proceeds from the offering for general corporate purposes, including, among other things, to pay the outstanding balance on its 364-day term loan facility and a portion of the outstanding balance on its five-year term loan facility.
The Notes and the related guarantee will be offered in the United States to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and outside the United States to non-United States persons in compliance with Regulation S under the Securities Act. The Notes and the related guarantee have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or exemption under the securities laws of any such jurisdiction.
About Leidos
Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company's 38,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements contained in this release involve risks and uncertainties that may affect Leidos' operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission (the "SEC"). Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "project," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other words of similar meaning in connection with a discussion of the transaction or future operating or financial performance or events. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the expectations of Leidos will be realized. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Leidos' consolidated financial condition, results of operations or liquidity. For a discussion identifying additional important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see Leidos' filings with the SEC, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in Leidos' annual report on Form 10-K for the year ended January 3, 2020, and in its quarterly reports on Form 10-Q which are available at http://www.Leidos.com and at the SEC's web site at http://www.sec.gov. The forward-looking statements contained in this release are made only as of the date of this release and are based on the information available to Leidos as of the date of this release. Readers are cautioned not to put undue reliance on forward-looking statements. Leidos assumes no obligation to provide revisions or updates to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Media:
Melissa Lee Dueñas
(571) 526-6850
Duenasml@leidos.com
Investors:
Peter Berl
(571) 526-7582
ir@leidos.com
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SOURCE Leidos
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