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CSC Seeks Waivers Following Bond DefaultCSC Seeks Waivers Following Bond Default
CSC is seeking a waiver from holders of the $200 million outstanding on its 6.25% notes due 2009. In return, CSC is offering to pay bondholders $1.25 for each $1,000 held in principal on the notes.
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Outsourcer Computer Sciences Corp. said Wednesday that it has defaulted on the terms of a bond issue and is asking lenders to waive any action in exchange for cash.
CSC is seeking the waiver from holders of the $200 million outstanding on its 6.25% notes due 2009. CSC defaulted on the terms of the issue when it failed to file its quarterly report for the fiscal first quarter ended September 26.
The company said it delayed filing due to an internal probe into the financial impact of its stock options program. CSC said it received a notice of default from bond trustee Citibank NA on December 8.
In exchange for waiving default action, CSC is offering bondholders $1.25 for each $1,000 held in principal on the notes. It will pay an additional $1.25 per $1,000 held if it fails to file its quarterly report by January 5. The consent solicitation expires on December 21. Fitch Ratings on Wednesday placed CSC on rating watch negative as a result of the default.
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