Unisys Corporation (UIS) recently announced the expiration of its tender offer period for its outstanding 14.25% Senior Secured Notes due 2015 (First Priority Notes) and 12.75% Senior Secured Notes due 2014 (Second Priority Notes).
The notes, which were validly tendered and bought back, comprised $ 134,798,000 principal amount of senior notes due in 2015 and $ 44,066,000 principal amount of senior notes due in 2014. The company accepted senior notes due in 2014 on a pro rata basis, due to the restriction of $ 220 million on the maximum payment amount.
As per the company’s declaration, proceeds from the sale of 2,587,500 shares of its 6.25% Mandatory Convertible Preferred Stock were used to redeem $ 86.3 million of the senior notes due in 2015 and $ 124.7 million of the senior notes due in 2014.
Unisys had fixed March 24, 2011, as an early tender date for the notes.
The total consideration was $ 1,232.50 per $ 1,000 in principal amount of the 2015 notes and $ 1,222.50 per $ 1,000 in principal amount of the 2014 notes. The above consideration includes an early tender payment of $ 40.
The notes, which remain outstanding after the repurchase of the notes tendered, are $ 25.5 million in principal amount of notes due in 2015 and $ 206.2 million in principal amount of notes due in 2014.
Recently, a few agencies have upgraded their ratings on Unisys in the wake of reduced debt and improved operating performance. Standard & Poor's (S&P) Ratings Services recently upgraded their corporate credit rating on Unisys, driven by improved operating performance. Earlier, Moody's Investors Service had also raised their corporate rating on Unisys.
Based in Blue Bell, Pennsylvania, Unisys is an information technology company. The company specializes in helping clients secure their operations, increase efficiency and utilize their data centers, enhance support to end-users and constituents and modernize their enterprise applications.
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