Leidos Holdings Completes Tender Offer for Its 3.625% Senior Notes due 2025
RESTON, Va., Feb. 21, 2025 – Leidos Holdings, Inc. (NYSE:LDOS) (“Holdings”), a leading science and technology integrator, announced today the successful completion of the previously announced tender offer by its wholly-owned subsidiary, Leidos, Inc. (“Leidos”), to purchase for cash (the “Tender Offer”) any and all of its outstanding 3.625% Senior Notes due 2025 (the “2025 Notes”).
Key Terms of the Tender Offer
The Tender Offer, which commenced on January 21, 2025, and expired at 5:00 p.m., New York City time, on February 19, 2025, allowed eligible holders of the 2025 Notes to tender their notes for purchase at the total consideration of 102.125% of the principal amount of the tendered notes, plus accrued and unpaid interest up to, but not including, the tender settlement date. The tender offer was subject to several conditions, including the receipt of regulatory approvals and the satisfaction of other customary closing conditions.
Impact on Leidos Holdings
The successful completion of the Tender Offer enables Leidos Holdings to retire approximately $575 million of its outstanding debt, thereby reducing its overall debt levels and improving its financial position. This strategic move positions the company to continue investing in its core business and potential growth opportunities while maintaining a strong financial footing.
Impact on Individual Investors
For individual investors who tendered their 2025 Notes during the Tender Offer, they have now received payment for their notes, which included the total consideration of 102.125% of the principal amount of their tendered notes, plus accrued and unpaid interest up to the tender settlement date. This represents a premium to the notes’ face value, providing a profit opportunity for those investors who chose to participate in the Tender Offer.
Impact on the World
The successful completion of Leidos Holdings’ Tender Offer is a significant event in the debt market, particularly in the context of the technology sector. By retiring a portion of its debt, Leidos Holdings is demonstrating its commitment to maintaining a strong financial position, which could potentially lead to increased investor confidence and a positive impact on the company’s stock price. Additionally, the successful tender offer may encourage other companies in the technology sector to follow suit and explore similar debt reduction strategies.
Conclusion
Leidos Holdings’ successful completion of the Tender Offer to purchase its outstanding 3.625% Senior Notes due 2025 marks a strategic move to reduce debt and improve its financial position. The move has provided individual investors with a profit opportunity, while also potentially boosting investor confidence in the company and the technology sector as a whole. As Leidos Holdings continues to focus on its core business and growth opportunities, this debt reduction strategy positions the company well for the future.
- Leidos Holdings, Inc. completes tender offer for its 3.625% Senior Notes due 2025
- Approximately $575 million of debt retired, reducing overall debt levels
- Individual investors received payment for tendered notes, including a premium
- Positive impact on Leidos Holdings’ stock price and investor confidence
- Encourages other technology companies to explore similar debt reduction strategies
