Unisys announces $220 million tender offer for 14¼%, 12¾% notes

By Angela McDaniels

Tacoma, Wash., Feb. 22 - Unisys Corp. will spend up to $220 million to repurchase some of its $246,603,000 of 14¼% senior secured notes due 2015 and $374,962,000 of 12¾% senior secured notes due 2014 through a tender offer, according to a company news release.

Holders may not tender their notes prior to March 11.

For each $1,000 principal amount, the purchase price is $1,232.50 for the 14¼% notes and $1,222.50 for the 12¾% notes. Both prices include a $40.00 early tender payment for notes tendered by 5 p.m. ET on March 24, the early tender time.

The company will also pay accrued interest up to but excluding the payment date. The $220 million maximum payment amount does not include accrued interest.

The tender offer will expire at 5 p.m. ET on April 8.

The company will accept all of the tendered 14¼% notes before it accepts any 12¾% notes. If the amount of notes tendered would cause Unisys to spend more than $220 million, the 12¾% notes will be subject to proration.

Equity clawback

In addition, the company plans to use the proceeds from a concurrent offering of mandatory convertible preferred stock to redeem up to 35% of each series of notes.

The redemption notice will be issued when the convertibles offering closes, which is expected to occur on Feb. 28.

The conditions to the tender offer include one relating to the completion of the company's redemption of notes under the equity clawback.

The dealer managers for the tender offer are Goldman Sachs & Co. (212 902-5183 or 800 828-3182) and Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745). The information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 937-2200).

Unisys provides information technology services, software and technology and is based in Blue Bell, Pa.

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