Unisys to price $225 million mandatory convertible preferreds to yield 6.25%-6.75%, up 18%-22%

By Rebecca Melvin

New York, Feb. 22 - Unisys Corp. planned to price $225 million of mandatory convertible preferred stock after the market close Tuesday to yield 6.25% to 6.75% with an initial conversion premium of 18% to 22%, according to a market source.

Concurrently with the registered, off-the-shelf convertible offering, Unisys began a cash tender offer for its 14.25% senior secured notes due 2015 and 12.75% senior secured notes due 2014.

The three-year mandatory has a $33.75 million greenshoe, and proceeds of the deal will be used to repay debt.

Goldman Sachs & Co. and Citigroup Global Markets Inc. are the joint bookrunners of the deal. RBS Securities Inc. will act as the co-manager.

Unisys is a Blue Bell, Pa., information technology services provider.

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