$1.2 billion transaction significantly strengthens company’s balance sheet and cash flow profile, increases operational flexibility; company expects to use net proceeds largely to pay down debt and reduce pension obligations
Company promotes Eric Hutto to president and chief operating officer
Unisys Corporation (NYSE: UIS) today announced the close of the sale of the company’s U.S. Federal business to Science Applications International Corp. (NYSE: SAIC).
Net proceeds from the transaction, which the company announced on February 6, are largely expected to be used to pay down debt and reduce pension obligations, thereby significantly improving Unisys’ balance sheet and cash flow profile, U.S. pension funded status and overall financial flexibility. Related to this, the company also announced that it has issued a notice of redemption to redeem all $440 million in aggregate principal amount of its outstanding 10.750% Senior Secured Notes due 2022. Pro forma for the transaction, the company’s net leverage (inclusive of pension deficit) has been reduced from 4.3x 2019 Adj. EBITDA(1) pre-transaction to 2.4x on a pro forma basis.
“The transaction ushers in a more agile Unisys,” said Unisys Chairman and CEO Peter Altabef. “The improved capital structure that comes from the sale of U.S. Federal positions Unisys with improved operational flexibility to better serve our clients and provides the potential for delivering increased value to shareholders.”
Company Promotes Eric Hutto
In conjunction with the announcement of the transaction’s close, Unisys also today announced the appointment of Eric Hutto, senior vice president and president of the Enterprise Solutions business, as the company’s president and chief operating officer. Enterprise Solutions and U.S. Federal were the company’s two business units prior to the sale of U.S. Federal.
“Eric’s business acumen, hard work and visionary leadership have all been on display since he joined the company in 2015,” Altabef said. “Eric brings passion and a competitive will to win that is contagious among our associates, and he will help drive Unisys to continued success. I look forward to working closely with him in taking our company forward.”