By Benjamin Chiou
Date: Tuesday 09 Apr 2024
LONDON (ShareCast) - (Sharecast News) - Shares in struggling French IT and consulting business Atos dived on Tuesday after the company announced it as raising €1.2bn in new debt and equity as it attempts to slash its leverage position and lower debt.
Shares were down nearly 10% at €2.09 by 1118 in Paris.
The company, which has seen the value of its stock now drop by more than 80% over the past 12 months, is struggling with its massive debt pile of €4.94bn, €500m of which is due by November with a further €3.15bn due by the end of next year.
In a statement on Tuesday, Atos said that €600m of cash is needed to fund the business over 2024 and 2025, which will be provided in the form of debt and/or equity by existing stakeholders or third-party investors. Meanwhile, it announced a new €300m revolving credit facility and €300m in additional bank guarantee lines.
The refinancing plan is part of Atos's strategy to obtain a BB credit profile by 2026 - up from B- currently - which assumes a financial leverage (or net debt-to-EBITA) ratio of below 3x by the end of 2025 and below 2x by the end of 2026.
Altogether, this implies a gross debt reduction of €2.4bn, it said, while remaining debt maturities will be extended by five years.
The company said it has reached an agreement in-principle with a group of banks, a group of bondholders and the French State on interim financing of €450m for additional liquidity until a formal refinancing agreement is reached with financial creditors - expected by July.
Atos said its financial forecasts assume it generating €9.9bn in revenue in 2024, down 2% on an organic basis, but it is targeting an improvement to €11.4bn by 2027.
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Currency | Euro |
Share Price | 2.10 |
Change Today | 0.04 |
% Change | 1.90 % |
52 Week High | 14.63 |
52 Week Low | 1.69 |
Volume | 1,238,824 |
Shares Issued | 109.00m |
Market Cap | 228.58m |
Beta | 2.15 |
Strong Buy | 0 |
Buy | 0 |
Neutral | 2 |
Sell | 5 |
Strong Sell | 3 |
Total | 10 |
Time | Volume / Share Price |
17:35 | 14 @ 2.10 |
17:35 | 1,781 @ 2.10 |
17:35 | 1,127 @ 2.10 |
17:35 | 1,113 @ 2.10 |
17:35 | 1,795 @ 2.10 |
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