Unisys Corporation (NYSE: UIS) has filed to sell up to $660 million in a mixed securities shelf. The securities listed are any combination of debt securities, common stock, preferred Stock, warrants, and stock purchase contracts. This is an interesting filing and there are ramifications here above and beyond normal filings.
The amount of securities actually results in aggregate gross proceedsof up to $1,100,000,000.00, consisting of $440,000,000 of unsoldsecurities that had previously been registered and the $660,000,000 ofadditional securities registered today.
The company listed the use of funds from the net proceeds as forgeneral corporate purposes, to reduce or refinance indebtedness and tomake acquisitions or engage in other business opportunities.
Where this gets interesting is that Unisys has a market cap of $224million. Shares are also down at $0.61 and its 52-week trading rangeis $0.38 to $5.24. We have listed Unisys a while back as a turnaroundwhich had not turned, and the economy has not helped out at all. Willa financing package or some large acquisition and/or the thought of areverse merger improve the company’s fortunes?
The company is still well under the 30-day $1.00 rule at NYSE as todaylooks to mark the fourteenth day. But the company is at risk ofgetting that dreaded NYSE listing requirements if its share price doesnot pick up.
Jon C. Ogg
November 26, 2008