By Augustin Turpin and Dimitri Rhodes
(Reuters) -French IT consulting firm Atos needs to raise 600 million euros ($651 million) in cash to fund its business in 2024 and 2025, it said on Tuesday as it outlined its refinancing plans.
The technology giant, which manages data and cybersecurity for France’s nuclear industry and the upcoming Olympic Games, said in March it was trying to find common ground with creditors over debt that stood at 4.65 billion euros at the end of last year.
Atos plans to raise 600 million euros through debt and equity from existing stakeholders or third party investors, who can submit financing proposals including new money by April 26.
“This would enable us to reach a refinancing agreement with financial creditors by June 2024,” CEO Paul Saleh said in a call with journalists.
Debt maturities, including 3.65 billion euros due by the end of 2025, would be extended by five years under the planned agreement, it said.
Atos also plans to raise 300 million euros in new revolving credit lines and 300 million euros in new bank guarantees.
France has pledged to grant another 50 million euro loan to Atos, the Ministry of Economy and Finance said. That will give the state a stronger say over strategic activities at the firm that specialises in spy-to-AI assets deemed strategic by the government.
Atos has been facing mounting pressures after profit warnings, a revolving door of CEOs and collapses of potential asset sales.
Its shares spiked at market open but quickly reversed course to trade 3.3% lower at 0733 GMT.
($1 = 0.9211 euros)
(Reporting by Augustin Turpin and Dimitri Rhodes in Gdansk; Editing by Milla Nissi and Jan Harvey)
