By Rebecca Melvin
New York, March 10 – Unisys Corp. priced an upsized $190 million of five-year convertible senior notes after the market close on Wednesday to yield 5.5% with an initial conversion premium of 22.5%, according to a company news release.
The Rule 144A deal was upsized from an originally talked $150 million size. The over-allotment option was increased to $28.5 million from $22.5 million.
Pricing came at the cheap end of 5% to 5.5% coupon talk and at the midpoint of 20% to 25% talk for the initial conversion premium.
J.P. Morgan Securities LLC was the bookrunnner of the deal.
The bonds are non-callable with no puts. They have takeover protection, and settlement will be in cash, shares, or a combination of cash and shares at Unisys’ election.
In connection with the offering of the notes, Unisys entered into a capped call transaction with the initial purchaser of the bonds or one of its affiliates.
Proceeds will be used for general corporate purposes, which may include funding cost reduction and savings initiatives, pension plans, investments, repaying debt, and the cost of the capped call, or bond hedge.
Blue Bell, Pa.-based Unisys is an information technology company.
| Issuer: | Unisys Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $190 million, upsized from $150 million
|
| Greenshoe: | $28.5 million, upsized from $22.5 million
|
| Maturity: | March 2021
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $9.76
|
| Conversion ratio: | 102.4249
|
| Call: | Non-callable
|
| Puts: | No puts except a takeover put
|
| Capped call: | Yes
|
| Pricing date: | March 9
|
| Settlement date: | March 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: UIS
|
| Stock price: | $7.97 at close March 9
|
| Market capitalization: | $383 million
|
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