I mentioned Unisys(UIS) earlier as a possible Super Stock, no one said anything so I thought I'd run it up the flag post one more time. What makes me believe inthis company a bit more this week is the new Prez is doing what he said(reducing debt)and he has a great track record.This is a story worth looking at IMHO and of course I own a little..Scott
Unisys Calls 8 1/4% Convertible Notes Due Year 2000 Unisys Calls 8 1/4% Convertible Notes Due Year 2000 October 7, 1997 8:31 AM EDT
BLUE BELL, Pa.--(BUSINESS WIRE)--Oct. 7, 1997--Unisys Corp. Tuesday announced that it had called for redemption on Oct. 27, 1997 all of its $345 million outstanding 8 1/4% convertible subordinated notes due on Aug. 1, 2000.
The call price will be 103.25% of the principal amount of the notes, plus accrued interest. The notes are convertible into Unisys common shares at a conversion price of $10.2375, or 97.6801 shares per each $1,000 principal amount of notes. Yesterday, Unisys common stock closed at $14.625.
"This is the first step toward our goal of reducing the company's debt load by $1 billion by the year 2000," said Lawrence A. Weinbach, Unisys chairman, president, and chief executive officer. "We are focused on making major improvements in our capital structure to reduce interest expense, improve our debt-to-equity ratio, and provide additional flexibility so we can continue to profitably grow this business."
Given that the current market price of Unisys common stock exceeds the note conversion price, the company expects all of the debt to be surrendered for conversion into stock, adding approximately 33.7 million shares to the company's common shares outstanding.
Unisys has entered into a standby underwriting agreement with an investment banker to help ensure that the conversion will be completed without significant use of company cash.
The redemption is being carried out under the terms of an indenture with The Bank of New York. Procedures for surrendering the notes for redemption or conversion will be mailed to note holders by The Bank of New York. Noteholders with questions should contact The Bank of New York at 212/815-2791.
Unisys is a registered trademark of Unisys Corp.
c Business Wire. All rights reserved.
Additional sources of information
Tell Me More - From Infoseek
Company Profile - From E*TRADE: UIS
Stock Charts - From Quote.Com: UIS
SEC Filings - From EDGAR Online: UIS
Company Capsule - From Hoover's Online: UIS
Quick Facts - From Market Guide: UIS
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