Science Applications International Corp amends credit agreement, establishes new loan facilities

Science Applications International Corp (NASDAQ:SAIC), currently valued at $4.65 billion in market capitalization, announced Wednesday that it has entered into an Eighth Amendment to its Third Amended and Restated Credit Agreement. According to a press release statement, the amendment was executed on September 30, 2025, with Citibank, N.A. as administrative agent and collateral agent, along with other lenders. InvestingPro analysis shows the company’s current ratio at 0.83, indicating tight liquidity management.

The amendment establishes a new senior secured term loan A facility totaling $1.1 billion, with a maturity date of September 30, 2030. The loan will amortize quarterly beginning October 31, 2026, at 0.625% of the original borrowed amount, increasing to 1.25% on October 31, 2027, and to 1.875% on October 31, 2028, with the remaining balance due at maturity. This new facility adds to SAIC’s total debt position, which InvestingPro data shows currently stands at $2.445 billion.

SAIC borrowed the full amount of the new term loan A facility on the closing date. Proceeds were used to fully repay all outstanding term A loans and accrued interest under the previous agreement, pay certain fees and expenses, and fund cash on the balance sheet.

The amendment also introduces a new $1 billion revolving credit facility, replacing the previous revolving credit facility of the same amount. The new revolving facility also matures on September 30, 2030. Funds from the new revolving loans were used to repay all advances outstanding under the prior facility immediately before the closing date.

Interest rate margins on the new credit facilities remain consistent with the previous loans, but the 0.10% credit spread adjustment used in calculating certain rates under the prior agreement has been eliminated.

The new credit facilities are secured by substantially all assets of SAIC and its wholly owned domestic subsidiaries, and are guaranteed by those subsidiaries. The facilities are subject to covenants and events of default that are substantially similar to those in the previous agreement.

This information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Science Applications International Corporation (SAIC) reported its Q2 FY2026 earnings, surpassing earnings per share (EPS) expectations with an actual EPS of $3.63 compared to the forecast of $2.24. Despite this significant earnings beat, the company experienced a revenue shortfall, reporting $1.77 billion against an anticipated $1.87 billion. Additionally, SAIC closed a $500 million senior notes offering, with net proceeds of approximately $493 million intended to repay outstanding revolving credit and cover offering-related costs. JPMorgan downgraded SAIC from Overweight to Neutral, citing concerns over a weakening revenue outlook and challenges in the company’s strategic pivot. Meanwhile, Stifel adjusted its price target for SAIC to $128 from $130, maintaining a Buy rating amid ongoing market challenges. The senior notes, priced at 100% of their principal amount, are due in 2033 and will serve as senior unsecured obligations. These developments reflect a complex financial landscape for SAIC, with both positive earnings surprises and revenue concerns influencing investor sentiment.

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