Atos SE Launches 2031 Senior Secured Notes and €110 Million Revolving Credit Facility

Atos SE has launched an offering of senior secured fixed rate notes and senior secured floating rate notes, both due 2031, alongside a new €110 million revolving credit facility, as the Paris-listed group presses ahead with a broader debt restructuring effort and implements its Genesis cost-saving plan. The notes offering and the new credit facility are designed to refinance existing obligations, restructure the company's debt hierarchy, and provide renewed liquidity to support the group's operations. The dual financing moves represent a coordinated effort to address the company's existing debt and credit arrangements through newly issued securities and a replacement revolving facility.

The Details

The notes offering comprises two instruments: senior secured fixed rate notes due 2031 and senior secured floating rate notes due 2031, collectively referred to as the Notes. These instruments represent a new issuance of debt securities intended to refinance existing obligations within the company's capital structure. Proceeds from this issuance, combined with cash already on the company's balance sheet, will be directed toward several specific obligations. These include the repayment of the first-lien term loan, covering both accrued cash interest and accrued payment-in-kind interest that has accumulated on that facility. The proceeds will also fund the full repurchase or redemption of the first-lien notes outstanding under the existing arrangements. In addition, a portion of the proceeds will be applied to pay associated refinancing fees and other transaction expenses required to complete the restructuring. The use of proceeds covers both the existing term loan and the outstanding first-lien notes, together with related financing costs.

In parallel with the notes offering, Atos intends to fully discharge its existing revolving credit facility and bonding line. The company will replace these existing credit arrangements with a new revolving credit facility of €110 million. Following completion of the restructuring, the capital structure will maintain a clear hierarchy of obligations. The existing 1.5-lien debt and second-lien debt will remain subordinated to the new Notes. Once the remaining existing debt has been fully discharged, the new revolving credit facility will be designated as having super senior status within the capital structure, reflecting its priority position in the revised debt hierarchy. The super senior designation for the new revolving credit facility will take effect after the full discharge of the remaining existing debt, establishing its position in the revised hierarchy.

Within 120 days of the issue date, the Notes and the new revolving credit facility will be guaranteed by certain direct and indirect subsidiaries of Atos SE. This guarantee arrangement will be provided across the subsidiary network.

Context

Atos SE is listed on Euronext Paris and operates under the Atos Group brand. The company employs approximately 56,000 people and reports annual revenue of approximately €7.2 billion. The organization has been undergoing a significant restructuring that encompasses both its Genesis cost-saving plan and a broader set of debt restructuring efforts designed to improve its financial profile and operational efficiency. The company is working to reorganize its capital structure and obligations as part of this restructuring program. The restructuring has involved changes to both the company's operational cost base and its outstanding financial obligations.

The full-year run-rate impact of Genesis cost-saving measures implemented during 2025 would have generated approximately €20 million of additional cost savings for the year ended December 31, 2025. These cost-reduction measures form part of a wider restructuring framework intended to return the company to a more sustainable financial footing.

Credit ratings agency Fitch Ratings has reviewed the proposed transaction and assigned the first-lien senior secured notes an expected rating of 'BB-(EXP)', with a Recovery Rating of 'RR1'. The expected rating applies to the notes that Atos SE has launched as part of the current refinancing. Fitch also affirmed Atos's Long-Term Issuer Default Rating at 'B-' while maintaining a Positive Outlook. The agency expects Atos's EBITDA leverage to rise temporarily to 8.1 times in 2026 before declining to 6.2 times in 2027. Fitch further projects that EBITDA margins will reach 7 percent in 2027, with further improvement to 8 percent projected by 2028.

What's Next

The guarantee process for the Notes and the new revolving credit facility is expected to be completed within 120 days of the issue date, when certain direct and indirect subsidiaries of Atos will formally provide their guarantees. Fitch affirmed Atos's Long-Term Issuer Default Rating at 'B-' with a Positive Outlook, projecting that EBITDA leverage will decline from 8.1 times in 2026 to 6.2 times in 2027, while margins improve to 7 percent in 2027 and 8 percent by 2028. The new €110 million revolving credit facility will provide Atos with liquidity as the company continues to implement its restructuring and cost-reduction initiatives. The company continues to implement both the Genesis cost-saving plan and the broader debt restructuring initiatives that form part of its efforts to improve its financial position. The Notes and the new revolving credit facility will be guaranteed by certain subsidiaries once the 120-day period concludes.