Unisys Pursues $700 Million Offering of Secured Notes to Refinance and Fund Pension Plan

Unisys Plans $700 Million Senior Secured Notes Offering

Unisys Corporation, a notable player in the global technology solutions arena, has revealed its intention to engage in a private offering of Senior Secured Notes valued at $700 million. This decision is contingent on market conditions and the veterans of investment compliance. The primary goal of this move is to refinance its existing notes and provide necessary funding for a portion of the company’s U.S. pension liabilities.

Offering Details

According to the announcement made on June 11, 2025, Unisys will offer the Senior Secured Notes to qualified institutional buyers and select international investors under the federal Securities Act of 1933. Concurrent with this, there will be a cash tender offer aimed at its existing notes, specifically a total of $485 million of 6.875% Senior Secured Notes that are due by November 1, 2027.

In conjunction with the tender offer, Unisys is looking to solicit approvals from the current note holders. This initiative is intended to amend the governing indenture of the existing notes, which would ultimately reduce the restrictive covenants and modify certain default events. Moreover, it intends to release the collateral securing the existing notes, facilitating a smoother transition in its financial obligations.

Financial Strategy

The funds generated from the offering of the Senior Secured Notes, alongside available cash, are expected to finance the tender offer, settle any related premiums, and cover expenses associated with the offering. Unisys aims to use the leftover proceeds to address a part of its long-term pension deficit and postretirement liabilities, in addition to general corporate needs.

Furthermore, the Senior Secured Notes will be secured by liens on nearly all of Unisys’s and its subsidiary guarantors’ assets. This includes a full pledge over the capital stock of each first-tier domestic and foreign subsidiary involved, reinforcing the financial stability and recoverability of the investment.

Market Implications and Compliance

As stipulated, these Senior Secured Notes will not be registered under the Securities Act, implying that they cannot be publicly sold in the U.S. without proper registrations or exemptions. Thus, any subsequent solicitation or offer made under this release adheres strictly to the outlined legal frameworks.

Citing a comprehensive range of conditions, the tender offer is also subjected to customary market practices and successful conditions for the closing of the Senior Secured Notes offering, which underscores the complexity involved in capital markets transactions.

With this strategic move, Unisys aims not only to streamline its financial structure but also to ensure it remains competitive and capable of supporting the pension commitments it has long maintained. These steps mark a significant milestone as Unisys continues its legacy of innovation and responsiveness to market needs.

About Unisys

Unisys stands as a prominent global technology solutions provider, specializing in various domains such as cloud computing, artificial intelligence, and enterprise services. The company has been helping organizations redefine their operational capabilities for over 150 years. Unisys drives firms to challenge existing paradigms and leverage cutting-edge solutions to unlock their full potential. To explore further about how Unisys is enabling clients to achieve breakthroughs, visit unisys.com.

This press release serves informational purposes only and should not be interpreted as a purchase offer or investment solicitation regarding the existing notes. Further information about risk factors associated with this offering can be found in Unisys's filings with the SEC.