The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

CSC Announces New Refinancing and Debt Redemptions

Thursday, September 13, 2012

CSC Announces New Refinancing and Debt Redemptions09:13 EDT Thursday, September 13, 2012 FALLS CHURCH, Va. (Business Wire) -- CSC (NYSE: CSC) announced today that it has accessed the capital markets in order to refinance upcoming debt maturities. On September 11, CSC priced an underwritten public offering of $700 million aggregate principal amount of senior unsecured notes consisting of $350 million aggregate principal amount of 2.500% Senior Notes due in 2015 and $350 million aggregate principal amount of 4.450% Senior Notes due in 2022. The sale of the notes is expected to close on September 18, 2012. The company has also received commitments for a new, four-year bank term loan of $250 million which carries a floating interest rate of LIBOR plus 187 basis points. This bank loan can be repaid in part or in whole without penalty. The company intends to use the net proceeds from the bond offerings and the bank loan to redeem maturing debt. The company has notified the trustee of its intention to redeem in full the following outstanding notes: $300 million aggregate principal amount of senior notes with a coupon of 5.00% due Feb. 2013, and $700 million aggregate principal amount of senior notes with a coupon of 5.50% due in March, 2013. “These market transactions are consistent with CSC's stated objectives of smoothing out our debt maturities, strengthening our credit profile, and maintaining ample access to liquidity,” said Paul Saleh, chief financial officer, CSC. About CSC CSC is a global leader in providing technology-enabled business solutions and services. Headquartered in Falls Church, Va., CSC has approximately 96,000 employees and reported revenue of $15.8 billion for the 12 months ended June 29, 2012. For more information, visit the company's website at All statements in this press release and in all future press releases that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the Company's control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Risk Factors” in CSC's Form 10-K for the fiscal year ended March 30, 2012 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer or sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.The new notes are being offered pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission, and a prospectus supplement and accompanying prospectus describing the terms of the offering have been filed with the Securities and Exchange Commission. When available, you may obtain a prospectus supplement and prospectus by visiting EDGAR on the SEC website at or by contacting Merrill Lynch, Pierce, Fenner & Smith Incorporated at 1-800-294-1322 or by emailing; Barclays Capital Inc. at 1-888-603-5847 or by emailing; or Citigroup Global Markets Inc. at 1-877-858-5407. Click here to subscribe to Mobile Alerts for CSC. CSCJoel ShadleCorporate Media RelationsCSC Corporate703-645-2660jshadle@csc.comorSteve VirostekInvestor RelationsCSC