24 September 2020 by jbchevrel
Unisys Corporation (UIS) is an information technology company that operates through 2 segments: Services and Technology. The Services segment offers solutions including cloud and infrastructure services, application services and business process outsourcing services. The Technology segment designs and develops software and offers hardware and other related products to clients. It provides a range of data-center, infrastructure management and cloud computing offerings to help clients virtualize and automate their data-center environments. UIS CDS is a member of the CDX HY index since series s12. This week it was reported that UIS CFO is weighing a bond sale in the coming months to reduce the company’s substantial pension deficit. Their unfunded pension obligations is huge. It stood at $1.75 billion while its market capitalization is $655 million. So the unfunded pension deficit is 267% of market cap. That’s the highest ratio among the 100 largest defined-benefit pension plans owned by U.S. companies, according to actuarial consulting firm Milliman Inc. UIS last issued debt in 2017, back then it raised about $440 million, saying the money would be used for general corporate purposes. Its total debt stood at $733 million at the end of 2019, up from $653 million in 2018. UIS 5y CDS was close to the tightest levels, below 200bp, as of yesterday’s close. Today while the global CDS widening came to a halt in London afternoon, UIS CDS opened wider +50bp. It had peaked above 400bp in March.