- Unisys (UIS, Financial) successfully closes $700 million private offering of Senior Secured Notes at a 10.625% interest rate.
- Proceeds from the notes will refinance existing debt, fund U.S. pension deficits, and support corporate purposes.
- Unisys amends its ABL credit facility, extending maturity to June 2030 and retaining a $125 million commitment.
Unisys Corporation (UIS) has completed a $700 million private offering of Senior Secured Notes due in 2031, carrying an interest rate of 10.625%. The proceeds from this issuance will be utilized to refinance the company's existing 6.875% senior secured notes maturing in 2027. Additionally, the funds will assist in addressing a portion of Unisys's U.S. pension deficit and postretirement liabilities, along with general corporate purposes.
The newly issued notes are guaranteed by Unisys's significant domestic subsidiaries and are secured by liens on nearly all of the company's assets, ensuring a robust security package for lenders. To further bolster its financial strategy, Unisys has amended its Asset-Based Lending (ABL) credit facility. The amendment keeps the ABL facility at $125 million with the option to increase it to $155 million and extends the maturity date from October 2027 to June 2030.
This substantial restructuring of debt at a higher interest rate—rising from 6.875% to 10.625%—translates to an added interest burden of approximately $26.25 million annually for Unisys. Despite this increase, extending the debt maturity timeline to 2031 offers Unisys additional financial maneuverability, while the prioritized funding of pension liabilities further reflects the company's commitment to long-term strategic financial management.
