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French technology company Atos has announced that it is currently engaged in talks with its banks regarding refinancing its debt.
The decision to reassess its capital strategy comes as the initially planned rights issue faces challenges due to changes in the market environment, according to Atos.
Changes in Market Conditions Affect Rights Issues:
Conditions for the initially planned 720 million euros ($776 million) rights issue are no longer valid, and the standby underwriting commitment by BNP Paribas and JPMorgan is no longer in effect.
Atos emphasized that it has initiated independent third-party procedures to facilitate and oversee negotiations with banks, aiming for a swift resolution.
Ongoing Negotiations for Asset Sale:
Atos had previously considered accessing capital markets and selling additional assets to address a 1.5 billion euro term loan maturing in January 2025 and 750 million euros in bonds maturing in May 2025.
Talks for the potential sale of Tech Foundations, Atos’s IT consulting arm, to Czech businessman Daniel Kretinsky’s EPEI group are ongoing, with no certainty of reaching an agreement.
Free Cash Flow Warning in January:
In January, Atos warned that its free cash flow for the second half of 2023 would be slightly below the initial target.
The company has been strategizing to manage its capital structure and financial obligations amid evolving market conditions.
