Unisys Corp. announced the pricing of $440 million aggregate principal amount of senior secured notes due 2022 in a previously disclosed private offering to certain institutional buyers.
The sale is expected to close April 17, subject to customary closing conditions. The notes will bear interest at 10.75% annually until maturity. Interest will be payable April 15 and Oct. 15 of each year, beginning Oct. 15.
Unisys said it plays to use the offering's net proceeds to redeem its outstanding 6.25% senior notes due 2017 in full, including any accrued and unpaid interest, as well as for general corporate purposes, which could include cost reduction funding and savings initiatives, obligations under its benefit plans and investments in certain services and technologies.
The company's subsidiaries, Unisys Holding Corporation, Unisys AP investment Company I and Unisys NPL Inc., will guarantee the notes on a senior secured basis.