NEWS!
Thursday December 10, 4:50 pm Eastern Time
Company Press Release
Unisys Announces Partial Call of Series A Cumulative Convertible
Preferred Stock
Action Will Be Accretive To 1999 Earnings Per Share
Company also declares regular quarterly dividend on preferred stock
BLUE BELL, Pa.--(BUSINESS WIRE)--Dec. 10, 1998-- Continuing the company's aggressive efforts to strengthen its capital structure, Unisys Corp.
(NYSE:UIS - news) announced Thursday that it plans to redeem 2 million of the 28.4 million outstanding shares of its Series A Cumulative Convertible
Preferred Stock.
The shares will be redeemed on Jan. 21, 1999 at the stated redemption price of $50 per share plus accrued dividends of approximately 6 cents per share. The
Series A Preferred Stock is convertible into shares of Unisys common stock, at the option of the holder, at a conversion price of $29.93, or approximately 1.67
shares of common stock for each preferred share converted.
Unisys common stock today closed on the New York Stock Exchange at $31 3/16. If the market price of the common stock is at least $30, a holder of the
preferred stock who elects to convert will receive common stock with a market value greater than the redemption price of $50 plus accrued dividends.
Unisys Chairman and CEO Lawrence A. Weinbach said that this partial call begins the next stage of the company's ongoing program to improve its capital
structure and credit rating. ''Over the past 15 months we have slashed debt by more than $1.1 billion and eliminated more than $110 million of annual interest
expense,'' Weinbach said.
''We are now taking aim at the next target in our financial structure -- eliminating the $106 million of annual dividend payments on the Series A Preferred Stock.
The partial call being announced today is the first step toward that goal, and we are pleased that our continued strong financial performance and cash flow allow
us to take this action.''
Weinbach said the call of the 2 million shares of preferred stock will save Unisys $7.5 million of annual dividend payments and will be accretive to 1999 earnings
per share. The Series A Preferred Stock pays an annual cumulative dividend of $3.75 per share.
The partial call is being carried out under the terms of the Series A Preferred Stock in the company's certificate of incorporation. Shares will be chosen for
redemption by lot by Harris Trust and Savings Bank, which will act as both redemption and conversion agent.
The company's transfer books on the Series A Preferred Stock will be closed from the close of business on Dec. 17 through the close of business on Dec. 21,
1998 for the purpose of selecting the shares to be redeemed. Formal notice and procedures for surrendering shares for redemption or conversion will be mailed
to the selected preferred stockholders by Harris Trust on Dec. 22, 1998.
Shareholders with questions can contact Harris Trust at 800/245-7630 or write to Harris Trust and Savings Bank, c/o Harris Trust Company of New York,
Wall Street Plaza, 88 Pine Street, 19th Floor, New York, N.Y. 10005.
In a separate action today, the Board of Directors of Unisys declared the regular quarterly dividend of 93.75 cents per share on the Series A Preferred Stock
for stockholders of record at the close of business on Dec. 17, 1998. The preferred stock dividend is payable on Jan. 15, 1999.
Unisys is a registered trademark of Unisys Corp.
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