SAIC (NYSE: SAI) released the following statement:
“[The firm has] announced the pricing of its sale of $450 million of 4.450 percent Notes due 2020 (the ‘2020 Notes’) and $300 million of 5.950 percent Notes due 2040 (the ‘2040 Notes’ and together with the 2020 Notes, the ‘Notes’). The offering is expected to settle on Dec. 20, 2010.
“The 2020 Notes will bear interest at the rate of 4.450 percent per year and the 2040 Notes will bear interest at the rate of 5.950 percent per year. Interest will be payable semi-annually on June 1 and Dec. 1 for each of the 2020 Notes and the 2040 Notes, commencing on June 1, 2011.
“SAIC intends to use the net proceeds from the offering for general corporate purposes. SAIC currently expects to use approximately $300 million of the net proceeds to repurchase additional shares of common stock to offset the impact on earnings per share for fiscal 2012 from the additional interest expense associated with the Notes. The actual amount of common stock repurchased will depend on market conditions and may be less than or greater than the amount currently expected as determined by the board of directors.”
