- Unisys (UIS, Financial) has announced the pricing of $700 million Senior Secured Notes due 2031 with an interest rate of 10.625%.
- The proceeds will be utilized to refinance existing notes, address pension deficits, and support corporate purposes.
- The offering is expected to close on June 27, 2025, subject to customary conditions.
Unisys Corporation (UIS) has announced the pricing of a $700 million private offering of Senior Secured Notes due in 2031. The notes have been priced with an annual interest rate of 10.625%, which will be payable semiannually starting January 15, 2026. This new offering aims to support Unisys's strategic financial restructuring.
Unisys plans to use the proceeds to finance a tender offer to purchase all $485 million of outstanding 6.875% Senior Secured Notes due 2027. The funds will also be directed towards redeeming the remaining existing notes, funding the U.S. pension plan deficit, covering postretirement liabilities, and for general corporate purposes. This financial move reflects Unisys’s commitment to strengthening its balance sheet and enhancing financial flexibility.
The new Senior Secured Notes and the guarantees will be backed by liens on nearly all assets of Unisys and its guaranteeing subsidiaries. The offering is expected to close on June 27, 2025, assuming all customary closing conditions are met. This comprehensive security arrangement indicates a robust collateral backing for investors, although the higher interest rate reflects increased capital costs for Unisys.
