Bulletin: Science Applications International Corp. Ratings Unaffected By Proposed Credit Facility Amendment And Extension

WASHINGTON D.C. (S&P Global Ratings) Aug. 3, 2016--S&P Global Ratings said today that its ratings on Science Applications International Corp. (SAIC; BB/Stable/--) are unaffected by the proposed amendment to the company's secured credit facility. The proposed amendment will extend the maturity of the company's $200 million revolver and now $528 million term loan A to 2021 from 2018, reduce the pricing, and reset the amortization on the term loan A, among other changes. The May 4, 2022, maturity on the now $532 million term loan B will not be changed, though the pricing will also be reduced. Although the repricing will modestly lower SAIC's interest expense, the transaction will not have a material impact on our expected credit ratios. Our

...WASHINGTON D.C. (S&P Global Ratings) Aug. 3, 2016--S&P Global Ratings said today that its ratings on Science Applications International Corp. (SAIC; ##/Stable/--) are unaffected by the proposed amendment to the company's secured credit facility. The proposed amendment will extend the maturity of the company's $200 million revolver and now $528 million term loan A to 2021 from 2018, reduce the pricing, and reset the amortization on the term loan A, among other changes. The May 4, 2022, maturity on the now $532 million term loan B will not be changed, though the pricing will also be reduced. Although the repricing will modestly lower SAIC's interest expense, the transaction will not have a material impact on our expected credit ratios. Our ratings on SAIC reflect the competitive nature of the government services market, the company's improved program and customer diversity following its acquisition of Scitor last year, and the brightening outlook for U.S. defense and government spending....

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