Unisys has announced the close of the sale of the company’s U.S. Federal business to Science Applications International Corp. (SAIC).
Net proceeds from the transaction, which was announced on February 6, are largely expected to be used to pay down debt and reduce pension obligations, thereby significantly improving Unisys’ balance sheet and cash flow profile, U.S. pension funded status and overall financial flexibility. Related to this, the company also announced that it has issued a notice of redemption to redeem all $440 million in aggregate principal amount of its outstanding 10.750% Senior Secured Notes due 2022. Pro forma for the transaction, the company’s net leverage (inclusive of pension deficit) has been reduced from 4.3x 2019 Adj. EBITDA(1) pre-transaction to 2.4x on a pro forma basis.
In conjunction with the announcement of the transaction’s close, Unisys also announced the appointment of Eric Hutto, senior vice president and president of the Enterprise Solutions business, as the company’s president and chief operating officer. Enterprise Solutions and U.S. Federal were the company’s two business units prior to the sale of U.S. Federal.