Business Context and Reporting Period
Company: Science Applications International Corporation (SAIC)
Filing Type: Form 8-K (Current Report)
Date of Report: February 7, 2018
Event: Entry into a Material Definitive Agreement regarding the amendment of the company's credit facilities.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or liquidity metrics. It focuses exclusively on the terms of a debt agreement amendment.
| Facility | Revised Interest Rate Margin (LIBOR) | Revised Interest Rate Margin (Base Rate) |
|---|---|---|
| Term Loan A Facility | 1.25% to 2.00% | 0.25% to 1.00% |
| Term Loan B Facility | 2.00% | 1.00% |
| Revolving Credit Facility | 1.25% to 2.00% | 0.25% to 1.00% |
Note: Margins for Term Loan A and the Revolving Credit Facility vary based on SAIC's leverage ratio.
Material Changes
- Interest Rate Reduction: The primary purpose of the Second Amendment to the Credit Agreement (originally dated May 4, 2015) was to reduce interest rate margins across the Term Loan A, Term Loan B, and Revolving Credit Facilities.
- Collateral and Guarantees: The amendment maintains the same collateral and guarantors as the existing agreement.
- Other Terms: All remaining terms of the Existing Credit Agreement remain unchanged.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook. No specific risks or contingencies are detailed beyond the standard incorporation of the amendment terms. The filing notes that the description of the amendment is qualified by reference to the full text of the agreement filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the specific leverage ratio thresholds that determine the variable interest rate margins for the Term Loan A and Revolving Credit Facilities.
- Review the full text of the Second Amendment (Exhibit 10.1) for any covenants or conditions not summarized in the 8-K.
- Confirm the total outstanding principal balances on the Term Loan A, Term Loan B, and Revolving Credit Facilities to calculate the potential interest expense savings.