(AOF) – Atos has unveiled the revised parameters of its financial restructuring framework and confirmed the receipt of a non-binding letter of intent from the French State for the acquisition of the group’s activities deemed strategic by the government. The struggling IT group now estimates the liquidity needed to finance activity over the 2024-2025 period at 1.1 billion euros, compared to 600 million euros previously announced. These funds are to be provided in the form of debt and/or equity by existing stakeholders or third-party investors.
Atos also cites 300 million euros of new revolving credit lines and 300 million euros of additional bank guarantee lines.
Atos is also targeting a credit rating of BB by 2026, which assumes a financial leverage of less than 2 by the end of 2026 and implies a reduction in gross debt of 3.2 billion euros. compared to 2.4 billion euros previously. The group also still wants a 5-year extension of the maturities of the residual debt.
In this context, the group has extended until May 3, 2024 the deadline for submission of refinancing proposals incorporating the need for new liquidity by existing stakeholders of Atos SE and third-party investors.
Atos intends to include in this financial restructuring agreement the extension of the interim financing of 450 million euros for which an agreement in principle has been reached and an additional interim financing of 350 million euros between July 2024 and the final implementation of the financial restructuring agreement.
The French state wants to buy strategic activities
On April 27, 2024, Atos received a non-binding letter of intent from the French State regarding the potential acquisition of 100% of the Advanced Computing, Mission-Critical Systems and Cybersecurity Products activities of Atos SE for a value indicative company figure between 700 million and 1 billion euros. This scope represents a turnover of around 1 billion euros in 2023, out of a total of 1.5 billion euros for the entire BDS division.
Atos “welcomes with satisfaction this letter of intent which would protect the strategic imperatives of sovereignty of the French State”. The due diligence phase with the French State would start soon, with a view to issuing a non-binding confirmatory offer by early June 2024.
The letter of intent provides for a limited exclusivity commitment, applying to direct offers within the scope covered by the letter of intent until the first of the following two dates: July 31, 2024 or the date of conclusion of the a global financial restructuring agreement.
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