Monday, September 14, 2009

After a quick near-double, some Unisys owners take gains (UIS)

AlphaNinja - Over the summer, Unisys (UIS) improved its balance sheet by offering debtholders secured notes, common stock, and cash in exchange for the debt they held:

BLUE BELL, Pa.--(BUSINESS WIRE)--Unisys Corporation (NYSE: UIS - News) announced today that it has successfully completed its previously announced private debt exchange offers. The debt exchange strengthens the Company’s balance sheet by reducing total debt outstanding by approximately $130 million, or about 12%, and reducing 2010 debt maturities to $65 million

The private debt exchange offers involved the exchange of outstanding unsecured senior notes of the Company for secured notes, shares of the Company’s common stock, and cash.

This afternoon we see a filing from many of those holders, indicating that they might begin to dump shares on the open market. The deleveraging is a good thing, and the dilution suffered by shareholders is certainly a better option than a bankruptcy filing. Some of those who may sell:

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