Atos raises EUR 1.25bn via senior bond issuance

Atos has announced the successful pricing of its offering of senior secured bonds for a total principal amount of EUR 1.25bn, comprising a EUR 950m fixed-rate tranche and a EUR 300m floating-rate tranche, both maturing in 2031, following the transaction's announcement last week.

The fixed-rate notes will be issued at par with an 8.125% annual coupon, payable semi-annually. The floating-rate notes will be issued at 99.5% of their principal amount, carrying a coupon of three-month EURIBOR (subject to a 0% floor) plus a margin of 525 basis points per annum, reset quarterly.

'The offering drew significant interest from a broad base of top-tier institutional investors, resulting in a strong oversubscription,' Atos highlighted. The company intends to use the proceeds from the issuance to repurchase or redeem existing debt securities.

As part of this refinancing exercise, the IT services group will also proceed with the repayment and cancellation of its existing revolving credit facility and its current bank guarantee lines.

Atos will establish a new agreement providing for a new revolving credit facility of up to EUR 110m. Settlement of the offering and the implementation of the new revolving credit facility are expected to take place on May 21.