Press release Market update Agreement reached on financial restructuring terms between the Company and a group of banks and bondholders Significant milestone towards reaching a final restructuring agreement by July Main terms of Atos’ financial restructuring plan: Contribution of €233 million by way of a capital increase with preferential subscription right, €75 million of which is backstopped by the bondholders participating to the new financings (described below) in cash and €100 million is backstopped by the Participating Creditors by debt equitizationEquitization of €2.8 billion of Atos financial debt (plus accrued and unpaid interests), bringing the total amount of converted debt into equity to €2.9 billion Net indebtedness reduced by circa €3.1 billion in line with the objective of a BB credit profile by 2026, which assumes a financial leverage1 of circa 2x by year-end 2026Contribution between €1.5 billion to €1.675 billion in new secured financings (new money debt), allocated equally between bank creditors and bondholders of Atos Implementation of the proposed financial restructuring plan will result in massive dilution of Atos existing shareholders Existing shareholders will be able to participate in the contemplated share capital increases Re-opening of syndication period for interim financing (additional tranches of €225 million and €350 million) to 3 July 2024, 1:00pm (Paris time) Opening of the syndication period for new secured financings of between €1.5 billion and €1.675 billion as of today Paris, France – June 30, 2024 – Atos SE ("Atos” or the "Company”) announces today that it has reached an agreement on the main terms of a financial restructuring plan (the "Agreement”) with a group of banks and bondholders of the Company.
Any cash proceeds resulting from the subscription by existing shareholders to these Equitization Capital Increases under their priority rights will be used in full to repay the Company’s relevant unsecured financial creditors at par value in due proportion; (together the "Financial Restructuring Capital Increases”) A contribution between €1.5 billion and €1.675 billion of new secured financings (new money debt) (depending on the amount of cash subscriptions to the Rights Issue and of the Optional Additional Equity as part of the Potential Capital Increase) to be subscribed in equivalent proportions by (i) the bank creditors holding at the Record Date (as defined below) debt under the €1.5 billion term loan A maturing in January 2025 and the €900 million revolving credit facility maturing in November 2025 (the "Loans”) and (ii) the bondholders holding at the Record Date bonds issued by Atos maturing in 2024, 2025, 2026, 2028 and 2029 (the "Bonds”).
Information concerning the additional tranches of €225 million and €350 million of facilities and the €75 million factoring program to be provided (including a new version of the agreement between the Company and its financial creditors) is accessible on the following website: Opening of the syndication period for New Secured Financings of between €1.5 billion and €1.675 billion as of today As announced in its press release of June 13, 2024 and in connection with the provision of secured new money debt under the Agreement in an amount from €1.5 billion to €1.675 billion in the form of new secured financings (the "New Secured Financings”) as well as €75 million in the form of backstop in cash of the Rights Issue (the "Equity Financings Backstop”, together with the New Secured Financings, the "New Financings”), Atos announces today the opening of a first syndication period for the New Financings.
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