Unisys plunges on news of $150M convertible offering

|About: Unisys Corporation (UIS)|By:, SA News Editor

Unisys (UIS -22%) plans to sell $150M worth of convertible senior notes due 2021, and grant the initial purchaser a $22.5M overatllotment option. For reference, Unisys closed yesterday with a $554M market cap.

Net proceeds will be used for general corporate purposes, which (per Unisys) could include cost-reduction efforts, pension obligations, investments in new services/technologies, and paying down existing debt.

The mainframe/IT services provider had $365M in cash and $312M in debt at the end of 2015.

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