Atos SE, a global leader in digital transformation, has announced the successful completion of its financial restructuring, marking a significant milestone in the company’s efforts to enhance its long-term financial stability and support its mid-term strategic objectives.
This restructuring, executed under the accelerated safeguard plan approved by the specialized Commercial Court of Nanterre on October 24, 2024, involved a series of strategic actions aimed at reducing debt, increasing liquidity, and positioning Atos for future growth.
Key Outcomes of the Financial Restructuring
€2.1 Billion Debt Reduction:
Atos successfully reduced its gross debt by €2.1 billion through the equitization of €2.9 billion of existing financial debts and the repayment of €800 million interim financings.
New Financing:
The restructuring secured €1.6 billion in new debt financing and approximately €145 million in new equity through a rights issue and additional capital increase, providing Atos with essential liquidity to support its future plans.
No Debt Maturities Until 2029:
With no debt maturities before the end of 2029, Atos now has the financial flexibility to implement its mid-term strategy and execute its industrial development plans.
Upgraded Credit Rating:
Following the restructuring, Atos’ corporate credit rating was upgraded to B- (stable) by S&P and Fitch, reflecting improved financial stability and market confidence.
Share Capital and Voting Rights:
Atos’ share capital has been significantly diluted due to the issuance of new shares under the restructuring plan. The company now has 179,035,979,643 shares, with creditors holding 74.4% of the share capital and voting rights. Following the exercise of warrants, creditors would hold 77.3% of the company’s share capital.
Leadership Remarks
Philippe Salle, Chairman of the Board of Directors, expressed his satisfaction with the successful completion of the restructuring, stating: “This achievement ensures the continuity of Atos’ activities and opens an exciting new chapter for the Group. I would like to thank the entire management team for their remarkable work over the past few months.”
Jean Pierre Mustier, Chief Executive Officer of Atos, added: “With this restructuring, Atos is now equipped with the financial resources necessary to successfully execute its industrial development under Philippe Salle’s leadership. We remain focused on delivering exceptional support to our customers through innovation and quality of service.”
Overview of the Restructuring Plan
The accelerated safeguard plan included several key actions:
Rights Issue: A €233 million rights issue, settled on December 10, 2024, raised around €143 million in cash and resulted in the equitization of €90 million of claims.
Reserved Capital Increases: These capital increases equitized €2.9 billion in debt, reducing financial obligations and enhancing equity.
New Preferred Financings: €1.6 billion of new financing was secured from participating banks and bondholders, including €0.8 billion in bonds and €0.8 billion in bank loans and revolving credit facilities.
Reinstated Debt: €1.95 billion of debt has been reinstalled with maturities of six years or more, including subordinated debts.
Shareholder Impact and Market Outlook
The restructuring has led to a massive issue of new shares, resulting in significant dilution for existing shareholders. For instance, a shareholder holding 1% of the company’s share capital would see their stake decrease to 0.35% after the capital increases, and to 0.31% if all warrants are exercised. As a result, there is potential for a significant impact on the market price of Atos shares, especially as creditors begin to trade their newly acquired shares.
Looking Ahead
Atos will hold its Annual General Meeting (AGM) on January 31, 2025, to approve the statutory and consolidated financial statements for the year ending December 31, 2023. The company will also release its full-year results for 2024 on March 5, 2025.
With the completion of the financial restructuring, Atos is poised for a fresh phase of growth and development, leveraging its strengthened balance sheet to drive innovation and deliver high-quality service to its customers.
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