Unisys Corporation (NYSE: UIS) announced today that it has successfully
completed its previously announced private debt exchange offers. The
debt exchange strengthens the Company’s balance sheet by reducing total
debt outstanding by approximately $130 million, or about 12%, and
reducing 2010 debt maturities to $65 million.
The private debt exchange offers involved the exchange of outstanding
unsecured senior notes of the Company for secured notes, shares of the
Company’s common stock, and cash.
As a result of the private exchange offers, Unisys exchanged
$235,085,000 of its 6 7/8% Senior Notes due 2010 (the "2010 Notes”),
$331,958,000 of its 8% Senior Notes due 2012 (the "2012 Notes”),
$133,986,000 of its 8 1/2% Senior Notes due 2015 (the "2015 Notes”) and
$59,378,000 of its 12 1/2% Senior Notes due 2016 (the "2016 Notes”) for
$384,962,000 of new 12 3/4% Senior Secured Notes due 2014 and
$246,603,000 of new 14 1/4% Senior Secured Notes due 2015, 52,421,654
shares of the Company’s common stock, par value $0.01 per share, and
$30.0 million in cash.
Approximately $64.9 million of 2010 Notes, $68.0 million of 2012 Notes,
$16.0 million of 2015 Notes and $150.6 million of 2016 Notes remain
outstanding after the debt exchanges.
The Company also announced that as a result of receiving consents from
holders of a majority of the principal amount of the 2010 Notes, the
2012 Notes and the 2015 Notes in connection with the exchange offers, it
has entered into a supplemental indenture to eliminate substantially all
of the restrictive covenants and certain events of default in the
indenture that governs these notes.
About Unisys
Unisys is a worldwide information technology company. We provide a
portfolio of IT services, software, and technology that solves critical
problems for clients. We specialize in helping clients secure their
operations, increase the efficiency and utilization of their data
centers, enhance support to their end users and constituents, and
modernize their enterprise applications. To provide these services and
solutions, we bring together offerings and capabilities in outsourcing
services, systems integration and consulting services, infrastructure
services, maintenance services, and high-end server technology. With
more than 26,000 employees, Unisys serves commercial organizations and
government agencies throughout the world. For more information, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in this press release that are not historical
facts are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
include, but are not limited to, any statements of the Company’s plans,
strategies or objectives for future operations; statements regarding
future economic conditions or performance; and any statements of belief
or expectation. All forward-looking statements rely on assumptions and
are subject to various risks and uncertainties that could cause actual
results to differ materially from expectations. Factors that could
affect the Company’s future results include: the Company’s ability to
refinance its debt; the economic and business environment; the Company’s
ability to access external credit markets; the Company’s significant
pension obligations; the success of the Company’s turnaround program;
aggressive competition in the information services and technology
marketplace; volatility and rapid technological change in the Company’s
industry; the Company’s ability to retain significant clients; the
Company’s ability to grow outsourcing; the Company’s ability to drive
profitable growth in consulting and systems integration; market demand
for the Company’s high-end enterprise servers and maintenance on these
servers; the risk that the Company’s contracts may not be as profitable
as expected or provide the expected level of revenues and that contracts
with U.S. governmental agencies may be subject to audits, criminal
penalties, sanctions and other expenses and fines; the risk that the
Company may face damage to its reputation or legal liability if its
clients are not satisfied with its services or products; the performance
and capabilities of third parties with whom the Company has commercial
relationships; the risks of doing business internationally; the business
and financial risk in implementing future dispositions or acquisitions;
the potential for infringement claims to be asserted against the Company
or its clients and the possibility that pending litigation could affect
the Company’s results of operations or cash flow. Additional discussion
of these and other factors that could affect Unisys’ future results is
contained in its periodic filings with the Securities and Exchange
Commission. Unisys assumes no obligation to update any forward-looking
statements.
RELEASE NO.: 0803/9014
Unisys is a registered trademark of Unisys Corporation. All other brands
and products referenced herein are acknowledged to be trademarks or
registered trademarks of their respective holders.
