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Overallotment option partially exercised for Unisys convertible senior notes

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Overallotment option partially exercised for Unisys convertible senior notes

Unisys Corp.in an April 13 press release said the initial purchasers of a recent debt offeringexercised part of their overallotment option.

The offering, for $190 million in aggregate of 5.50% convertiblesenior notes due 2021, closedMarch 15.

The initial purchasers bought an additional $23.5 million inaggregate principal amount of the notes, on the same terms and conditions as thenotes sold previously. Following that purchase, Unisys has issued a total of $213.5million aggregate principal amount of the notes.

The additional notes are being issued under the indenture datedMarch 15 between Unisys and Wells Fargo Bank NA as trustee, according to a Form8-K filed April 13.

The aggregate proceeds from the offering, net of the initialpurchasers' discount and the cost of capped call transactions entered into to reducepotential dilution to Unisys' common stock, now total about $180 million.

The capped call transactions were entered into with J.P. MorganSecurities LLC, as agent for JPMorgan Chase Bank NA, London Branch; Bank of AmericaNA; and Wells Fargo Bank NA.

The company intends to use the net proceeds for general corporatepurposes, which may include funding cost reduction and savings initiatives, obligationsunder its defined benefit pension plans, investments in next-generation servicesand technologies, and repaying existing debt. Unisys may use all or a portion ofthe proceeds to address the maturity of its $210 million 6.25% senior notes duein 2017.

The notes are Unisys' senior unsecured obligations. They arenot redeemable prior to maturity and are convertible into common shares at a conversionrate of 102.4249 shares per $1,000 principal amount of notes, which is equal toan initial conversion price of $9.76 per common share. Upon any conversion, Unisyswill settle its conversion obligation in cash, shares of its common stock, or acombination of cash and stock, at its election.