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.
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