Atos Initiates Senior Bond Issue to Refinance Existing Debt
Atos SE has announced the launch of a fixed and variable rate senior secured bond offering maturing in 2031, along with the establishment of a new €110 million revolving credit facility. The group plans to use the proceeds from this issuance to fully repay its existing 1L debt and refinance its financial commitments.
Repayment of 1L Debt and Establishment of a New Guarantee Structure
Atos intends to use the proceeds from the offering and a portion of its available cash to finance the full and priority repayment of its 1L term credit agreement (including accrued cash and PIK interest) and to finance the tender offer or repayment of its 1L bonds (including accrued interest and any applicable redemption premium). The costs and expenses related to the refinancing will also be settled from these resources.
Atos also plans to repay and cancel its existing revolving credit line and bank guarantee line, and to enter into a new revolving credit agreement for €110 million.
Hierarchy of Creditors and Guarantee Status
At or around the date of issuance, the trustee governing the Bonds, the agent, and the initial lenders under the new revolving credit agreement will adhere to the existing intercreditor agreement. The holders of the Bonds will benefit from a rank and right to the proceeds from the common securities on a pro rata basis with those of the creditors under the new revolving credit line, and a priority over all existing and future debt subordinated to the Bonds.
Following the full repayment of the existing debt remaining after the offer (1.5L and 2L debt), the new revolving credit line will be granted a 'super senior' status under a new super senior intercreditor agreement. Within 120 days from the date of issuance, the Bonds and the new revolving credit line will be secured by certain direct and indirect subsidiaries of the group.
