Business Context and Reporting Period
Company: Science Applications International Corporation (SAIC)
Filing Type: Form 8-K (Current Report)
Date of Report: October 18, 2024
Event: Entry into a Material Definitive Agreement regarding debt financing.
Key Financial Metrics
This filing does not report operational financial metrics such as revenue, profit, cash flow, or margins. The report focuses exclusively on a modification to the company's debt structure.
| Metric | Previous Value | New Value |
|---|---|---|
| Applicable Margin (Term SOFR Advances - Tranche B3) | 1.875% per annum | 1.750% per annum |
| Applicable Margin (Base Rate Advances - Tranche B3) | 0.875% per annum | 0.750% per annum |
Material Changes
On October 18, 2024, SAIC entered into the Seventh Amendment to its Third Amended and Restated Credit Agreement. The primary material change is a reduction in the interest rate margins applicable to Tranche B3 Loans, effective immediately upon closing. This amendment reduces the cost of borrowing for both Term SOFR and Base Rate advances.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of new risks. The document states that the description of the Amendment is qualified in its entirety by reference to the full text of the agreement filed as Exhibit 10.1. No unusual items or contingencies were disclosed in this specific report.
Investor Verification Checklist
- Verify the total outstanding principal balance of Tranche B3 Loans to quantify the annual interest savings from the margin reduction.
- Review Exhibit 10.1 (Seventh Amendment) for any "conforming amendments" or covenants that may impact future financial flexibility.
- Confirm the duration of the Tranche B3 Loans to assess the long-term impact of the reduced margin.
- Check subsequent filings for any changes to the company's overall debt maturity profile.