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BLUE BELL, Pa. - Unisys Corporation (NYSE: UIS), a technology solutions company currently valued at $331 million in market capitalization, announced Wednesday its intention to offer $700 million in Senior Secured Notes through a private placement to qualified institutional buyers, subject to market conditions. According to InvestingPro analysis, the company appears undervalued despite recent challenges, with analysts projecting a return to profitability this year.
The technology solutions company simultaneously launched a cash tender offer to purchase all of its outstanding $485 million in 6.875% Senior Secured Notes due November 2027. As part of this process, Unisys is soliciting consents to amend the existing notes’ terms, including eliminating most restrictive covenants and certain default events, releasing collateral, and modifying other provisions. The company maintains a healthy current ratio of 1.67, according to InvestingPro data, suggesting adequate liquidity to manage its debt obligations.
Unisys plans to use the proceeds from the new offering, along with cash on hand, to finance the tender offer, pay related fees, redeem any remaining existing notes, fund a portion of its pension deficit and postretirement liabilities, and for general corporate purposes.
The new Senior Secured Notes will be guaranteed by Unisys’ material domestic subsidiaries and secured by liens on substantially all assets of the company and these subsidiary guarantors.
The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
The tender offer is contingent upon several conditions, including the successful completion of the new notes offering with sufficient proceeds to fund the transaction.
This information is based on a press release statement from Unisys Corporation. For deeper insights into Unisys’s financial health and detailed analysis, including 6 additional ProTips and comprehensive metrics, investors can access the full Pro Research Report available on InvestingPro.
In other recent news, Unisys Corporation reported its first-quarter 2025 financial results, revealing a notable earnings performance. The company exceeded earnings per share (EPS) expectations, posting a loss of -$0.05, which was significantly better than the forecasted -$0.21. Despite this positive earnings surprise, Unisys faced a revenue decline of 11.4% year-over-year, totaling $432 million, falling short of the projected $445.2 million. The company continues to maintain a positive full-year revenue growth outlook, anticipating a growth range of 0.5% to 2.5% in constant currency. Unisys also announced strategic initiatives, including the introduction of new products and expanded partnerships, which aim to bolster its competitive position. Furthermore, the company expressed optimism about significant growth and profitability improvements in the latter half of the year, driven by new business segments and strategic partnerships. Analyst firm Avison elevated Unisys to "disruptor" status in their AI services radar view, reflecting the company’s growing recognition in the industry. Additionally, Unisys achieved titanium partner status with Dell, underscoring the strength of their strategic relationship.
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