Booz Allen prices $1.2B in senior notes to fund acquisition

Booz Allen Hamilton Holding Corporation (NYSE: BAH) has priced two tranches of senior notes totaling $1.2 billion through its wholly-owned subsidiary, Booz Allen Hamilton Inc., according to a press release.

The offering consists of $700 million in 5.375% Senior Notes due 2030 and $500 million in 5.900% Senior Notes due 2034. The offering is expected to close on August 4, 2026, subject to customary closing conditions. Booz Allen will fully and unconditionally guarantee the notes on a senior unsecured basis.

The company intends to use net proceeds to partially finance its acquisition of Ultra Electronics Advanced Tactical Systems, Inc., known as Ultra Mission Solutions, under a Stock Purchase Agreement dated June 19, 2026. Proceeds will also repay approximately $714 million in outstanding borrowings under an existing senior unsecured term loan facility, with the remainder for general corporate purposes.

If the Ultra Mission Solutions acquisition is not completed by December 19, 2026, or a later agreed extension date, the company will be required to redeem the 5.900% Senior Notes due 2034 through a special mandatory redemption. The acquisition is expected to close in the second quarter of Booz Allen's fiscal year 2027.

BofA Securities, J.P. Morgan Securities, PNC Capital Markets, and Truist Securities are acting as joint bookrunners, alongside Goldman Sachs, SMBC Nikko, US Bancorp, and Wells Fargo Securities. Capital One Securities and TD Securities are serving as co-managers.

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