Computer Sciences Raises $700 Million in First Sale Since 2009

Computer Sciences Corp. (CSC), the manager of networks for NASA and the U.S. Navy, sold $700 million of bonds in its first offering in more than three years.

The company issued $350 million each of three- and 10-year securities, according to data compiled by Bloomberg. The 2.5 percent, three-year debt priced to yield 220 basis points more than similar-maturity Treasuries and the 4.45 percent, 10-year bonds paid a spread of 280 basis points. The sale was originally set at $500 million. Proceeds will be used to repay debt.

CSC previously issued debentures in February 2009, selling $1.7 billion of debt in two parts, according to data compiled by Bloomberg. The Falls Church, Virginia-based company’s $1 billion of 6.5 percent securities maturing in March 2018 traded on Sept. 7 at 113.4 cents on the dollar to yield 3.79 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The company is also getting a $250 million term loan led by Bank of Tokyo-Mitsubishi UFJ Ltd. and Bank of America Corp. The lead arrangers have received commitments from a syndicate of lenders for the planned credit, which will mature in four years, according to a regulatory filing today.

CSC expects that as much as $250 million will be borrowed from the delayed-draw loan within five months of closing. It said in the filing that it may use the proceeds for general corporate purposes, including the refinancing of debt.

To contact the reporters on this story: Sarika Gangar in New York at sgangar@bloomberg.net Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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