Unisys Boosts Financial Flexibility with Successful Tender Offer for Senior Secured Notes
- Unisys's tender offer saw 98.98% participation, reinforcing confidence in its financial management and strategic direction.
- The company plans to settle the purchase of tendered Notes on June 27, 2025, improving its balance sheet.
- Unisys obtained consents for indenture amendments, enhancing operational flexibility and aligning its capital structure with business strategy.
Unisys Enhances Financial Flexibility Through Successful Tender Offer
Unisys Corporation recently reports significant early results from its tender offer for its outstanding 6.875% Senior Secured Notes due 2027. As of the Early Tender Expiration deadline on June 25, 2025, an impressive 98.98% of the $485 million aggregate principal amount of the Notes has been validly tendered. This strong participation reflects the confidence of Noteholders in the company's strategic direction and financial management. Unisys plans to settle the purchase of these tendered Notes on June 27, 2025, at a total consideration of $1,006.25 per $1,000 principal, which also includes accrued interest, thereby reinforcing its commitment to improving its balance sheet.
In conjunction with the tender offer, Unisys has successfully obtained the necessary consents from Noteholders for proposed amendments to the indenture governing the Notes. These amendments aim to eliminate most of the restrictive covenants associated with the Notes, release all collateral securing the Notes, and modify several provisions within the indenture. These changes, effective on the Early Settlement Date, are designed to enhance the company's operational flexibility and align its capital structure with its evolving business strategy, which is increasingly important in the current economic climate.
Holders who did not participate by the Early Tender Expiration still have the opportunity to tender their Notes until July 11, 2025, albeit for a lower Tender Offer Consideration of $976.25 per $1,000 principal. Payment for these later tendered Notes is expected on the Final Settlement Date of July 14, 2025. The early tender premium of $30.00 serves as an incentive for prompt participation, reflecting Unisys's proactive approach to manage and optimize its debt obligations while adapting to market conditions.
In summary, Unisys's tender offer signifies a strategic move to bolster its financial position and enhance operational flexibility. By addressing its debt structure, the company not only reassures investors but also sets a foundation for sustainable growth in a competitive landscape. The strong response from Noteholders highlights confidence in Unisys's future prospects, positioning the company favorably as it navigates challenges and opportunities in the technology sector.
