Unisys tenders for all $400 million 8 1/8% notes due 2006

By Jennifer Chiou

New York, Sept. 9 - Unisys Corp. said it launched its previously announced tender offer for all $400 million of its 8 1/8% senior notes due 2006.

The company is also soliciting consents from noteholders for proposed amendments to the indenture to eliminate all restrictive covenants and events of default.

The consent solicitation ends at 5 p.m. ET on Sept. 15 and the tender offer expires at 5 p.m. ET on Oct. 7, unless extended.

The company said it will use the proceeds of new issues of $550 million of senior notes priced at par, including $400 million of 8% senior notes due 2012 and $150 million of 8½% senior notes due 2015, to fund the offer.

Unisys said it will pay a $20.00 per $1,000 principal amount of notes consent fee for investors who tender their notes before the consent deadline.

The company will calculate the tender payment based on the present value of the notes plus interest payments to June 1, 2006, discounted using the yield to May 31, 2006 of the 2.5% Treasury due May 31, 2006 and 50 basis points. The payment includes the consent fee.

Citigroup Global Markets Inc. (800 558-3745 or call collect 212 723-6106) and Banc of America Securities LLC (888 292-0070 or call collect 704 388-4813) are the joint bookrunning managers, dealer managers and solicitation agents.

Global Bondholder Services Corp. is the information agent (866 924-2200 or call collect 212 430-3774).

Based in Blue Bell, Pa., Unisys is an information technology company.

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