Booz Allen issues $650 million in senior notes due 2035

Booz Allen Hamilton Holding Corp (NYSE:BAH), a leading management consulting firm with a market capitalization of $14.2 billion and annual revenue of $11.8 billion, has entered into a material definitive agreement, issuing $650 million in aggregate principal amount of 5.950% Senior Notes due 2035. The transaction closed today, with the company stating the notes were sold under an existing shelf registration statement. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value metrics.

The senior notes, guaranteed by Booz Allen Hamilton Holding Corporation, were issued by its wholly-owned subsidiary, Booz Allen Hamilton Inc. The notes are unsecured and unsubordinated obligations of the company. The guarantee by the parent company is also unsecured and unsubordinated.

This financial move comes under an indenture dated August 4, 2023, with U.S. Bank Trust Company, National Association serving as trustee. The indenture includes customary provisions, covenants, and events of default.

The underwriting agreement for the issuance was entered with BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., and Wells Fargo (NYSE:WFC) Securities, LLC on March 11, 2025. The legal opinion regarding the validity of the notes and the related guarantee was provided by Debevoise & Plimpton LLP.

Booz Allen Hamilton, headquartered in McLean, Virginia, specializes in management consulting services and is known for its work with U.S. government agencies and Fortune 500 companies. The company’s fiscal year ends on March 31, and it is incorporated in Delaware.

Investors may refer to the full text of the agreements, including the base indenture and supplemental indenture, for detailed information on the terms of the notes. These documents are part of the exhibits filed with the SEC and are incorporated by reference into the company’s registration statement.

This financial activity is based on a press release statement and the related SEC filing, providing key information for investors and stakeholders of Booz Allen Hamilton. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, including detailed financial health metrics, 12 additional ProTips, and expert analysis of the company’s valuation and growth prospects.

In other recent news, Booz Allen Hamilton reported strong financial results for the third quarter of fiscal year 2025, with earnings and revenue surpassing analyst expectations. The company’s revenue increased by 14% year-over-year to $2.9 billion, while earnings per share reached $1.55, exceeding the forecast of $1.51. Despite these positive outcomes, the company’s stock experienced a decline in pre-market trading, possibly due to broader market concerns. Booz Allen Hamilton also raised its revenue growth guidance for fiscal year 2025 to 12-13%, reflecting confidence in its strategic initiatives. In a move to enhance its leadership in technology, Booz Allen appointed Mujtaba Hamid as Executive Vice President of Product, tasked with driving the development of strategic technology offerings. Additionally, Raymond (NSE:RYMD) James upgraded Booz Allen Hamilton’s stock rating from Market Perform to Outperform, citing a significant backlog increase and a $1 billion buyback program as positive factors. These developments highlight Booz Allen Hamilton’s ongoing efforts to strengthen its position in the advanced technology sector.

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