Science Applications International entered into an amendment to its credit agreement with Citibank as administrative agent and collateral agent.
The amendment primarily:
- Extended the maturity of the term loan A facility and extended the termination date of the revolving credit facility.
- Transferred certain amounts of the term loan B facility to the term loan A facility.
- Reduced the interest rate margins for the term loan A facility, the term loan B facility and the revolving credit facility.
Prior to the amendment, approximately $528 million of the term loan A facility and $532 million of the term loan B facility were outstanding under the existing agreement.
Principal borrowings of approximately $131.5 million under the term loan B facility were transferred to the term loan A facility.
The maturity date for the term loan A facility and the termination date for the revolving credit facility were extended to August 23, 2021 and the maturity date for the term loan B facility remained unchanged at May 4, 2022.
The interest rate on borrowings under the term loan A facility and the revolving credit facility is a variable rate based on either LIBOR plus a margin from 1.50% up to 2.25%, or Citibank’s base rate plus a margin from 0.50% up to 1.25%, depending on SAIC’s then current leverage ratio. The interest rate on borrowings under the term loan B facility is now LIBOR plus a margin of 2.50% or Citibank’s base rate plus a margin of 1.50%.
The amended facilities are secured by the same collateral and guaranteed by the same guarantors as under the original agreement. Certain covenants were amended to provide for greater operational and financial flexibility to SAIC and certain other minor and conforming amendments were made. The remaining terms in the existing agreement were unchanged.