Science Applications International CorpSAIC
Science Applications International Corp Debt Disclosure
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The Company’s debt as of the periods presented was as follows:
| January 30, 2026 | January 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Stated interest rate | Effective interest rate | Principal | Unamortized debt issuance costs | Net | Principal | Unamortized debt issuance costs | Net | ||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Term Loan A Facility due June 2027 | — | % | — | % | $ | — | $ | — | $ | — | $ | 1,122 | $ | (2) | $ | 1,120 | |||||||||||||||||||||||||||||||
Term Loan A Facility due September 2030 | 5.07 | % | 5.15 | % | 1,100 | (3) | 1,097 | — | — | — | |||||||||||||||||||||||||||||||||||||
| Term Loan B3 Facility due February 2031 | 5.57 | % | 5.71 | % | 501 | (3) | 498 | 506 | (3) | 503 | |||||||||||||||||||||||||||||||||||||
| Senior Notes due April 2028 | 4.88 | % | 5.11 | % | 400 | (2) | 398 | 400 | (3) | 397 | |||||||||||||||||||||||||||||||||||||
Senior Notes due November 2033 | 5.88 | % | 6.09 | % | 500 | (6) | 494 | — | — | — | |||||||||||||||||||||||||||||||||||||
Revolving Credit Facility due June 2027 | — | % | — | % | — | — | — | 200 | — | 200 | |||||||||||||||||||||||||||||||||||||
| Total debt | $ | 2,501 | $ | (14) | $ | 2,487 | $ | 2,228 | $ | (8) | $ | 2,220 | |||||||||||||||||||||||||||||||||||
| Less current portion | 19 | — | 19 | 313 | — | 313 | |||||||||||||||||||||||||||||||||||||||||
| Total debt, net of current portion | $ | 2,482 | $ | (14) | $ | 2,468 | $ | 1,915 | $ | (8) | $ | 1,907 | |||||||||||||||||||||||||||||||||||
Credit Facility
As of January 30, 2026, the Company had a $2.6 billion secured credit facility (the "Credit Facility") consisting of a Term Loan A Facility due September 2030, a Term Loan B3 Facility due February 2031 (together, the "Term Loan Facilities"), and a $1.0 billion secured Revolving Credit Facility due September 2030 (the "Revolving Credit Facility").
The Company's Third Amended and Restated Credit Agreement ("Third Amended Credit Agreement") contains certain restrictive covenants applicable to the Company and its subsidiaries including a requirement to maintain a Senior Secured Leverage Ratio (as defined in the Third Amended Credit Agreement) of not greater than 4.00 to 1.00, unless a Permitted Acquisition (as defined in the Third Amended Credit Agreement) occurs in which case not greater than 4.25 to 1.00 for three consecutive quarters following such a transaction.
In fiscal 2025, the Company issued a $510 million senior secured term loan credit facility ("Term Loan B3 Facility due February 2031") which is subject to the same covenants and events of default as the Company's existing Term Loan Facilities. The entire Term Loan B3 Facility due February 2031 was immediately borrowed by the Company and used to settle outstanding term loan facilities. The Term Loan B3 Facility due February 2031 bears interest at a variable rate of interest equal to a base rate or a Secured Overnight Financing Rate ("SOFR") rate, plus the applicable interest rate margin of 0.75% for base rate loans and 1.75% for SOFR rate loans. Borrowings under the Term Loan B3 Facility due February 2031 amortize quarterly beginning on July 31, 2024 at 0.25% of the original borrowed amount with the remaining unamortized balance due in full upon its maturity on February 8, 2031 and may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.
During fiscal 2025, the Company incurred $6 million of debt issuance costs, of which $4 million was recognized in interest expense and the remaining $2 million deferred and amortized to interest expense through the maturity date of the Term Loan B3 Facility due 2031 utilizing the effective interest rate method.
On September 30, 2025, the Company executed the Eighth Amendment to the Third Amended and Restated Credit Agreement ("Eighth Amendment"), which established a new $1.1 billion senior secured term loan credit facility due on September 30, 2030 ("Term Loan A Facility due September 2030"). The entire Term Loan A Facility due September 2030 was immediately borrowed by the Company and the proceeds were used to pay in full the outstanding principal balance and accrued interest under the Term Loan A Facility due June 2027, transaction related fees and expenses, and for general corporate purposes. The Term Loan A Facility due September 2030 is secured by substantially all of the assets of the Company and the Company’s wholly owned domestic subsidiaries, and is guaranteed by each of the Company’s wholly owned domestic subsidiaries. The Term Loan A Facility due September 2030 is subject to the same covenants and events of default as the Company’s existing term loans under the Credit Facility.
Borrowings under the Term Loan A Facility due September 2030 amortize quarterly beginning on October 31, 2026 at 0.625% of the original borrowed amount, with such quarterly amortization increasing to 1.25% on October 31, 2027, and to 1.875% on October 31, 2028, with the remaining unamortized balance due in full upon maturity. The Term Loan A Facility due September 2030 may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.
The Eighth Amendment also established a new $1.0 billion revolving credit facility with a termination date of September 30, 2030 ("Revolving Credit Facility due September 2030") that replaced the Revolving Credit Facility due June 2027.
The Term Loan A Facility due September 2030 and the Revolving Credit Facility due September 2030 bear interest at a variable rate of interest equal to a base rate or a Secured Overnight Financing Rate (SOFR) rate, plus the applicable interest rate margin of 0% to 0.75% for base rate loans and 0.75% to 1.75% for SOFR rate loans, dependent on the Company’s leverage ratio. The Eighth Amendment eliminated the 0.10% credit spread adjustment used in the calculation of SOFR rate loans on the Term Loan A Facility due 2027 and the Revolving Credit Facility due June 2027.
The scheduled principal repayments for the Term Loan Facilities may be reduced or eliminated by annual mandatory prepayments of a portion of the Company’s Excess Cash Flow (as defined in the Third Amended Credit Agreement). Mandatory prepayments are allocated to the Term Loan Facilities on a pro rata basis and reduce the remaining scheduled principal installments for each facility.
During fiscal 2026, the Company made scheduled principal repayments of $46 million and $5 million on the Term Loan A Facility due June 2027 and the Term Loan B3 Facility due February 2031, respectively. During fiscal 2025, the Company made scheduled principal repayments of $77 million and $4 million on the Term Loan A Facility due June 2027 and the Term Loan B3 Facility due February 2031, respectively. During fiscal 2024, the Company made scheduled principal repayments of $31 million on the Term Loan A Facility due June 2027 and voluntary principal prepayments of $160 million and $90 million on the Term Loan B Facility due October 2025 and the Term Loan B2 Facility due March 2027, respectively. During fiscal 2024, the Company wrote off deferred debt issuance costs of $2 million associated with the voluntary principal prepayments which were recognized in interest expense. The Company made no principal repayments on the Term Loan A Facility due 2030 in the periods presented.
During fiscal 2026, 2025, and 2024, the Company borrowed $1.9 billion, $1.4 billion, and $160 million and repaid $2.1 billion, $1.2 billion, and $160 million under its revolving credit facilities, respectively. There was no balance outstanding on the Revolving Credit Facility as of as of January 30, 2026. Any obligations under the Revolving Credit Facility are secured by liens on substantially all of the assets of the Company and its subsidiaries. The Revolving Credit Facility is available to the Company through September 2030. Commitment fees for undrawn amounts under the Revolving Credit Facility range from 0.125% to 0.25% per annum based on the Company's leverage ratio.
As of January 30, 2026, the Company was in compliance with the covenants under its Credit Facility.
Senior Notes
On September 25, 2025, the Company issued $500 million of unsecured 5.875% Senior Notes due 2033 ("Senior Notes due November 2033") through a private offering. Proceeds received from the offering were used to repay all indebtedness outstanding under the Revolving Credit Facility due June 2027 and fees and expenses from the offering, with remaining proceeds to be used for general corporate purposes, including working capital to fund growth and strategic projects and transactions. The Senior Notes due November 2033 were issued pursuant to an indenture, dated September 25, 2025 and are the senior unsecured obligations of the Company and are fully and unconditionally guaranteed by each of the Company’s existing and future domestic subsidiaries that guarantee the Company’s obligations under its credit facilities and certain other indebtedness. Interest is payable semi-annually on May 1 and November 1 of each year, commencing on May 1, 2026. The principal is due on November 1, 2033.
At any time prior to November 1, 2028, the Company may redeem some or all of the Senior Notes due November 2033 at a price equal to 100% of the principal amount, plus accrued and unpaid interest, plus an applicable “make-whole premium.” On or after November 1, 2028, the Company may redeem in whole or in part the Senior Notes due November 2033 at set redemption prices, plus accrued and unpaid interest. At any time on or prior to November 1, 2028, the Company may redeem up to 40% of the original aggregate principal amount of the Senior Notes due November 2033 with the net cash proceeds from certain equity offerings at a redemption price equal to 105.875% of the outstanding principal amount, together with accrued and unpaid interest. Upon the occurrence of certain events constituting a change of control, the Company may be required to make an offer to repurchase all of the Senior Notes due November 2033 then outstanding at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest.
The Company incurred $12 million of debt issuance costs associated with the Eighth Amendment and the Senior Notes due November 2033, of which $1 million was recognized in interest expense and the remaining $11 million deferred and amortized to interest expense through the maturity date of the facility utilizing the effective interest rate method.
The Company's Senior Notes due 2028 have 4.875% interest payable semi-annually on April 1 and October 1 of each year, and the principal is due April 2028.
Maturities of debt as of January 30, 2026 are:
| Fiscal Year | Total | ||||
| (in millions) | |||||
| 2027 | $ | 19 | |||
| 2028 | 31 | ||||
| 2029 | 489 | ||||
| 2030 | 88 | ||||
| 2031 | 899 | ||||
| Thereafter | 975 | ||||
| Total principal payments | $ | 2,501 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 16, 2026 | Showing above |
| 2025 | Mar 17, 2025 | |
| 2024 | Mar 20, 2024 | |
| 2023 | Apr 3, 2023 | |
| 2022 | Mar 28, 2022 | |
| 2021 | Mar 26, 2021 | |
| 2020 | Mar 27, 2020 | |
| 2019 | Mar 29, 2019 | |
| 2018 | Mar 29, 2018 | |
| 2017 | Mar 30, 2017 | |
| 2016 | Mar 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.