Atos Secures US$1.8 Billion in Financing for Debt Restructuring

Atos has secured new financing totaling €1.675 billion (US$1.8 billion) for its debt restructuring through an agreement with creditors and banks, ensuring the continuity of its activities. 

"This important step ensures the sustainability of Atos' operations for the benefit of our employees and clients," said Jean-Pierre Mustier, chairman of the board of directors, Atos, in a press release.

The financing agreement includes contributions from both banks and bondholders. The banks will contribute up to €837.5 million, consisting of €337.5 million in the form of a term loan, approximately €440 million in a revolving credit facility, and a further €60 million in bank guarantees. Bondholders will provide an additional €837.5 million, covering the need for between €1.5 billion and €1.675 billion of new financing as outlined in the restructuring agreement announced on Jun. 30.

Atos' restructuring plan also includes a capital increase with preferential rights for existing shareholders, valued at €233 million. This capital increase is guaranteed at €175 million by the same creditors. In addition, the conversion into capital of €2.8 billion of debts, which with unpaid interest would total €2.9 billion is envisaged. These measures will enable a reduction of approximately €3.1 billion in total debt, which was estimated at €4.8 billion.

Regarding the role of the board of directors, it will continue to be composed of a majority of independent directors, and some creditors will have the right to propose the appointment of members and/or observers, according to Reuters.

The financial restructuring of Atos aims to ensure its long-term stability and sustainability. With the implementation of this agreement, Atos will guarantee a minimum liquidity of €1.1 billion until Dec. 31, 2026. This liquidity, according to the company, is crucial to maintain day-to-day operations and continue with its strategic projects, including its role as one of the technological pillars of the Paris Olympic Games.

The restructuring plan will be implemented in the second quarter of 2024 and will continue until the first quarter of 2025. During this period, Atos, which employs approximately 90,000 people in 69 countries, is expected to implement structural changes.