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Leidos, Inc. Updates on Senior Notes Tender Offer

Leidos Holdings, Inc., listed on the NYSE under the ticker LDOS, announced today the details regarding its cash tender offer concerning its outstanding 3.625% Senior Notes set to mature in 2025. The offer, managed via Leidos, Inc., a wholly-owned subsidiary, marked a significant financial maneuver aimed at optimizing capital structure and debt management.

On February 20, 2025, at 5:00 PM New York City time, the tender offer reached its expiration deadline, signaling this stage of the corporate strategy. By this cut-off time, holders of these Senior Notes had validly tendered a total of $267,393,000 worth of notes. This amount represents a notable 53.48% of the entire issued principal amount of $500 million, revealing an encouraging response from the market participants.

The remaining amount of the tendered notes will be settled on February 25, 2025, during the designated settlement date, where those who participated in the tender are entitled to receive cash compensation amounting to $998.30 per $1,000 of principal, plus any accrued and unpaid interest. This is calculated from the last interest payment date of November 15, 2024, up till the settlement date, further enhancing the attractiveness of this tender offer.

Leidos has engaged several prominent financial institutions to facilitate this tender offer. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and U.S. Bancorp Investments, Inc. have all played critical roles as Dealer Managers while Global Bondholder Services Corporation acts as both depositary and information agent for the tender offer, ensuring a streamlined process for participants.

The 2025 Senior Notes have specifics, including their CUSIP number 52532XAD7. With a substantial remaining balance of notes, the tender offer reflects a strategic opportunity for both Leidos and its investors at this time. It is notable that the tender offer represents a comprehensive approach to managing financial obligations while positioning itself advantageously within the market.

However, it is essential to note that this announcement neither serves as an offer to purchase nor a solicitation for selling any of the 2025 Notes. Potential participants should be aware that the tender offer is strictly governed by the terms outlined in the accompanying Offer Documents, which provide necessary details concerning the procedures and relevant stipulations.

Insights into current market conditions reveal that Leidos, known for its innovative digital solutions within government and commercial sectors, is proactively adapting to emerging financial landscapes. The company reported annual revenues of approximately $16.7 billion for the fiscal year that concluded on January 3, 2025, reflecting its robust business model and extensive operational network, which spans across multiple sectors globally.

As the tender offer unfolds, investors and industry observers will await updates on the company's next steps and the implications of this financial strategy moving forward. The investment community holds a keen interest in the outcomes of such corporate initiatives, as they often reflect broader economic conditions and influence market confidence in similar enterprises.

Leidos endeavors to remain a leader in the technology and government sectors, continuously innovating and strategizing for sustainable growth. Stakeholders will be attentive to future communications from the company regarding its overall business outlook and additional financial opportunities that may arise following this tender offer.