Leidos Issues Senior Notes to Fund Entrust Acquisition

The latest update is out from Leidos Holdings ( (LDOS) ).

On March 2, 2026, Leidos, Inc. issued and sold $600 million of 4.100% senior notes due 2029 and $800 million of 5.000% senior notes due 2036, raising an estimated $1.387 billion in net proceeds through an unsecured offering guaranteed by Leidos Holdings, Inc. The company plans to use the funds primarily to finance a portion of the purchase price for its proposed acquisition of Entrust parent KENE Parent, Inc., with provisions for early redemption, change-of-control repurchase, and a special mandatory redemption at 101% of principal if the Entrust transaction is not completed by mid-August 2026 or is abandoned, underscoring both its acquisition-driven growth strategy and the protections offered to bondholders.

The notes, governed by an existing 2020 indenture with Citibank, N.A. as trustee, carry semi-annual interest payments beginning September 15, 2026 and mature on March 15, 2029 and March 15, 2036, respectively. Standard events-of-default and acceleration terms apply, while the lack of a closing condition tying the debt issue to completion of the Entrust deal means Leidos will retain the capital for general corporate purposes or short-term investments if the acquisition is delayed or fails, potentially affecting its leverage profile and strategic flexibility.

The most recent analyst rating on (LDOS) stock is a Buy with a $215.00 price target. To see the full list of analyst forecasts on Leidos Holdings stock, see the LDOS Stock Forecast page.

Spark’s Take on LDOS Stock

According to Spark, TipRanks’ AI Analyst, LDOS is a Outperform.

The score is driven primarily by improving profitability and strong cash generation, reinforced by constructive 2026 guidance and robust bookings/backlog. These positives are partly offset by weak current technical momentum (below key moving averages), near-term timing and cash-flow headwinds (award slippage and higher capex), and some uncertainty in reported recent revenue growth and debt changes.

To see Spark’s full report on LDOS stock, click here.

More about Leidos Holdings

Leidos Holdings, Inc., through its direct wholly owned subsidiary Leidos, Inc., operates in the technology and defense contracting sector, providing advanced solutions and services to government and commercial customers. The company frequently accesses the debt capital markets to finance strategic initiatives, including acquisitions aimed at expanding its capabilities and market reach.

Average Trading Volume: 1,011,828

Technical Sentiment Signal: Buy

Current Market Cap: $22.67B

See more data about LDOS stock on TipRanks’ Stock Analysis page.