Unisys Releases Early Results of Its Cash Tender Offer for Senior Secured Notes

Unisys Corporation Announces Early Tender Offer Results

Unisys Corporation (NYSE: UIS), a prominent player in the technology solutions sector, recently disclosed the preliminary results of its cash tender offer for its 6.875% Senior Secured Notes due 2027. As of June 25, 2025, a remarkable 98.98% of the outstanding Notes have been validly tendered, indicating a strong response from investors and bondholders. This data illustrates Unisys’s focused approach to optimizing its capital structure and engaging with its financial stakeholders effectively.

Overview of the Tender Offer

The tender offer allows Unisys to purchase its outstanding Notes for cash, with total consideration being set at $1,006.25 per $1,000 principal amount. This value not only reflects the premium associated with early tender but also includes any accrued but unpaid interest. Unisys aims to settle these transactions by June 27, 2025, marking a significant step in their financial strategy.

Alongside the tender offer, Unisys is also executing a consent solicitation to amend the indenture governing these Notes. By acquiring the requisite consents from bondholders, Unisys plans to eliminate restrictive covenants and modify specific default events, thereby enhancing its operational flexibility moving forward.

Details of Participation

Data shows that the total principal amount of outstanding Notes was approximately $485 million, and around $480 million of these were tendered by the deadline. This participation demonstrates confidence among holders in Unisys's strategic initiatives and future prospects. The company has also confirmed that holders may continue to tender their Notes until July 11, 2025, with a lower consideration of $976.25 for late submissions.

Future Plans and Financing Transaction

In conjunction with the tender offer, Unisys disclosed its intention to pursue a significant financing transaction that includes issuing $700 million worth of Senior Secured Notes due 2031. This issuance is part of a broader strategy to restructure existing debt obligations and potentially fund U.S. pension plans. Unisys plans to utilize a mix of proceeds from this offering and current cash on hand to cover the costs associated with the tender offer and related fees.

Conclusion

Unisys is navigating the complexities of capital management with a strategic and proactive approach. By engaging with its bondholders through this tender offer and ongoing consent solicitation, the company positions itself for more substantial operational freedom and potential growth. As they prepare for the final settlement and further financial transactions, the market will be keenly watching how these movements influence the company's trajectory and its capacity to deliver innovative technological solutions worldwide.

For more information about Unisys and its services, please visit unisys.com.