Science Applications International, a Fortune 500 research and engineering company with more than USD6 billion in revenue last year, is considering entering its first interest-rate swap on the back of a recent USD800 million bond issue. The company is reviewing swap transactions with potential counterparties, according to Ron Zollars, spokesman in San Diego.
"We are considering approaches [from investment banks] regarding how much and when to swap from fixed to floating-rate," Zollars said. He was unable to provide further information regarding its swap plans or the company's debt profile.
Last month the company came to market with a USD550 million 10-year note with a fixed coupon of 6.25% and a USD250 million 30-year bond with a fixed coupon of 7.125%. The deal was underwritten by JPMorgan. Zollar said the company is looking to enter a swap to convert some or all of those liabilities into floating-rate obligations.
Moody's Investors Service rates the company A3 and Standard & Poor's rates it A minus.