Atos shares drop as IT firm seeks €1.2bn to pay down 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.