Unisys Corporation (NYSE:UIS), a global information technology company, has amended its secured revolving credit facility, according to a recent SEC filing. The modification, effective as of Monday, extends the maturity of the facility from its original October 2025 date to October 2027.
This strategic financial move also adjusts the total available loans and letters of credit under the facility to $125 million. Additionally, the agreement includes an accordion feature, which could potentially increase the credit facility to $155 million if needed.
The amended credit agreement aims to provide the company with continued financial flexibility. The new terms reflect changes in the credit market and the company's ongoing efforts to manage its capital structure efficiently.
The details of the amendment are outlined in the full text of the amended ABL Credit Agreement attached to the SEC filing. This filing confirms the company's commitment to maintaining a robust financial foundation as it continues to deliver integrated systems design and related services.
This information is based on the company's latest Form 8-K filing with the SEC. Unisys Corporation, with its headquarters in Blue Bell, Pennsylvania, operates under the jurisdiction of Delaware with a fiscal year ending on December 31.
The company's stock is listed on the New York Stock Exchange under the ticker UIS. The amended credit facility is a clear indication of Unisys's proactive approach to managing its financial obligations and supporting its business operations.
In other recent news, Unisys Corp , a global information technology company, has reached a settlement with the U.S. Securities and Exchange Commission (SEC) over a probe into the company's disclosure practices related to cybersecurity incidents. The settlement includes a $4 million civil penalty, which has been factored into Unisys's financial statements for 2023 and its 2024 cash flow projections. Unisys has also made efforts to enhance its cybersecurity measures and disclosure policies following the disclosure of a material weakness in November 2022.
In addition, Unisys has been making strides in its corporate transformation, with first quarter revenues and profits slightly surpassing market expectations. According to Canaccord Genuity, Unisys has secured three times as much new business in the first half of the year compared to the whole of the previous year. Despite a slight decrease in total company TCV, new logo TCV more than doubled, indicating strong market demand for their solutions.
Canaccord Genuity has adjusted its shares target for Unisys, lowering it to $4.25 from the previous $5.00, while maintaining a Hold rating on the stock. This change reflects the firm's view on the company's performance and outlook. The company is also focusing on improving operational efficiency, reducing costs, and enhancing profitability and cash generation. Despite a minor decrease in total company revenue, Unisys anticipates revenue growth in the range of -1.5% to +1.5% for the full year.
InvestingPro Insights
Unisys Corporation's recent amendment to its credit facility aligns with several key financial metrics and trends highlighted by InvestingPro. The company's market capitalization stands at $373.02 million, reflecting its position in the IT services sector. Despite the extended credit facility, InvestingPro Tips indicate that Unisys is "trading at a low revenue valuation multiple," which could be attractive to value-oriented investors.
Interestingly, while Unisys has not been profitable over the last twelve months, with an operating income of -$242.2 million, analysts predict the company will be profitable this year. This forecast aligns with the company's strategic financial moves, including the credit facility amendment, which may be aimed at supporting future growth and profitability.
The company's revenue for the last twelve months as of Q3 2023 was $2.02 billion, with a modest growth of 0.29%. However, the quarterly revenue growth for Q3 2023 was more promising at 6.97%, suggesting potential improvement in the company's financial performance.
It's worth noting that Unisys has shown a remarkable price total return of 94.93% over the past year, indicating strong market confidence. This performance is particularly noteworthy given the company's current financial metrics and may reflect investor optimism about its future prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 6 additional InvestingPro Tips available for Unisys Corporation, providing a deeper understanding of the company's financial health and market position.
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