Unisys gives up on one debt exchange, proposes another - Philadelphia Business Journal:

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The Blue Bell, Pa.-based information-technology company said late Tuesday it has terminatedr the offer that was to have expired tonightafter . In it was trying to get holders of four seriew of senior notes with a totapl face valueof $1.06 and due beginning next year, to exchange them in a privatee offer for new seniodr secured notes that would have paid 12.625 percent interesgt and been due in 2014. Now, Unisys (NYSE:UIS) is tryinyg to get holders of the senior notez to exchange them in private placements for two seriea of new seniorsecured notes; either nearly 73.7 milliom shares or 19.9 percent of its whichever is less; and up to $30 millionb in cash.
Unisys said it has negotiater those terms with representatives of a groulp that it has been told consists of holders of 40 percen t of thesenior notes. Unisys also is askinf the senior noteholders to agree to amendments that would eliminates nearly allthe notes’ covenants and some of the clausew with which it must comply to avoid defaultinhg on the notes. A noteholder that tenderx a senior note is agreeing to the Unisys said. The holders of each series of notez will vote as a separatse class and Unisys will consider a seried to have agreed to the amendmentw if the holders of the majority of the principakl amount of the notes in theseriesx agree, the company said.
The seniot notes comprise $300 million of 6.875 percent notes due 2010; $400 million of 8 percenft notesdue 2012; $150 million of 8.5 percengt notes due 2015; and $210 million of 12.5 percent noteds due 2016. Unisys said holders of 25.6 percenft of the 2010 notes, 23.8 percent of the 2012 notes, 54 percent of the 2015 notes and 15.8 percent of the 2016 noteds have agreed to tenderttheir notes. The company said the exchange offer is contingenyt upon at least 40 percentg of the 2010 notes and 2012 noted being tendered by Midnight EDTJuly 28.