Business Context and Reporting Period
Science Applications International Corporation (SAIC) filed a Current Report on Form 8-K dated September 30, 2025. The filing reports the entry into a material definitive agreement and the creation of a direct financial obligation through the Eighth Amendment to its Third Amended and Restated Credit Agreement.
Key Financial Metrics and Debt Structure
The filing details a refinancing of SAIC's existing credit facilities with the following new terms:
- New Term Loan A Facility: $1,100,000,000 commitment, fully drawn on the closing date.
- New Revolving Credit Facility: $1,000,000,000 commitment.
- Maturity Date: September 30, 2030 for both facilities.
- Amortization Schedule (Term Loan A):
- 0.625% quarterly beginning October 31, 2026.
- 1.25% quarterly beginning October 31, 2027.
- 1.875% quarterly beginning October 31, 2028.
- Remaining balance due at maturity.
- Interest Rate Adjustment: The 0.10% credit spread adjustment for Term Secured Overnight Financing Rate (SOFR) based rates has been eliminated.
- Collateral: Secured by substantially all assets of the Company and its wholly owned domestic subsidiaries.
The filing does not provide specific values for revenue, profit, cash flow, or operating margins as this is a transactional report rather than a periodic financial statement.
Material Changes Versus Prior Period
The primary material change is the replacement of the Existing Credit Agreement with the New Credit Facilities. Proceeds from the new $1.1 billion Term Loan A and the new $1.0 billion Revolving Facility were used to:
- Repay in full all outstanding Term A Loans and Revolving Loans under the Existing Credit Agreement.
- Pay accrued interest and fees/expenses related to the Existing Credit Agreement and the Amendment.
- Fund additional cash on the balance sheet.
Outlook, Risks, and Management Commentary
The filing does not contain forward-looking guidance, management commentary on operational outlook, or specific risk factors beyond the standard covenants and events of default which remain substantially the same as the Existing Loans. The transaction was executed to refinance existing debt and optimize the capital structure by removing the 0.10% credit spread adjustment.
Key Facts for Investor Verification
- Verify the total debt load post-refinancing is $2.1 billion ($1.1B Term + $1.0B Revolver).
- Confirm the elimination of the 0.10% credit spread adjustment on SOFR-based rates.
- Review the amortization schedule starting in late 2026 to assess future cash flow requirements.
- Check the use of proceeds to confirm the extent of cash funded to the balance sheet after debt repayment.
- Examine the full text of the Eighth Amendment (Exhibit 10.1) for specific covenant details.