Unisys Corp Announces $700 Million Private Offering of Senior Secured Notes

On June 11, 2025, Unisys Corporation (NYSE: UIS) made headlines with its announcement of a proposed private offering of $700 million in Senior Secured Notes. The move is designed to refinance existing notes while simultaneously addressing the company’s long-term pension deficits and related liabilities. This strategic financial maneuver highlights Unisys's commitment to optimizing its capital structure and ensuring the financial health of the organization.

Unisys plans to offer the Senior Secured Notes to qualified institutional buyers under Rule 144A and to international investors under Regulation S of the Securities Act of 1933. The offering is subject to market conditions, and the proceeds will primarily be allocated to finance a concurrent cash tender offer for its outstanding 6.875% Senior Secured Notes due November 1, 2027, with a total principal amount of $485 million.

The company is also soliciting consents related to the existing notes, aiming to amend the indenture that governs them. The proposed amendments include eliminating most restrictive covenants and certain events of default, as well as releasing the collateral securing the existing notes. This dual approach—the tender offer and the consent solicitation—serves to streamline Unisys's financial obligations and enhance its operational flexibility.

The net proceeds from the new offering will be employed for several key purposes:

The Senior Secured Notes will be guaranteed on a senior secured basis by major domestic subsidiaries of Unisys at the time of issuance. Future guarantees will also include all U.S. domestic subsidiaries that support the company's ABL credit facility, providing a robust security framework. The notes and guarantees will be secured by liens on substantially all of Unisys's assets, including a pledge of 100% of the capital stock of first-tier domestic and foreign subsidiaries.

The tender offer and consent solicitation are contingent upon several conditions, primarily the successful completion of the Senior Secured Notes offering, which must yield sufficient net proceeds to support the tender offer and associated costs. The company must also navigate customary conditions that accompany such financial transactions.

Unisys's proactive steps in announcing the $700 million private offering of Senior Secured Notes reflect its strategic focus on strengthening its financial position. By refinancing existing debt and addressing pension obligations, Unisys aims to enhance operational flexibility and secure its future. As the company moves forward with this offering, market participants will be keenly observing how these financial maneuvers will impact Unisys’s broader business strategy and financial health.

In an ever-evolving technological landscape, such strategic financial planning is crucial for Unisys as it continues to provide innovative solutions to its clients while maintaining financial robustness.