Computer Sciences Corporation (the “Company”) has instructed The Bank of New York (the “Trustee”) to give notice to redeem $500 million of its 7 3/8% Notes due June 15, 2011 (the “Notes), representing the entire principal amount of the Notes outstanding. The Company intends to redeem the Notes on March 30, 2010 (the “Redemption Date”) at a price (the “Redemption Price”) equal to the greater of (a) 100% of the principal amount of the Notes to be redeemed and (b) the sum of the present values of the remaining scheduled payments of principal and interest on such Notes to be redeemed (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date, on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Comparable Treasury Rate, plus 30 basis points, plus, in either the case of clause (a) or clause (b), accrued and unpaid interest thereon to the Redemption Date. The Notes were issued pursuant to the Indenture dated as of February 26, 2001 as supplemented, and the Agreement of Resignation, Appointment and Acceptance dated as of May 15, 2007 between The Bank of New York Trust Company N.A and the Company. The Indenture specifies that Goldman, Sachs & Co. shall be the Independent Investment Banker to select the Comparable Treasury Issue to calculate the Redemption Price, and Goldman, Sachs & Co. has selected the 0.875% U.S. Treasury due May 31, 2011 as the Comparable Treasury Issue for the purpose of such calculation. In accordance with the Indenture, the Redemption Price will be calculated at 3:30 p.m. (New York City time) on March 25, 2010, the third business day preceding the Redemption Date. Interest will cease to accrue on the redeemed Notes on and after the Redemption Date. |
