French vendor Alcatel-Lucent has amended some credit facilities as part of its “shift plan” announced earlier this summer.
Its subsidiary Alcatel-Lucent USA has changed the covenants of its senior secured credit facilities agreed at the end of…
French vendor Alcatel-Lucent has amended some credit facilities as part of its “shift plan” announced earlier this summer.
Its subsidiary Alcatel-Lucent USA has changed the covenants of its senior secured credit facilities agreed at the end of January, lowering the interest rates.
Its US$1.75bn 7.25% senior secured term loan facility due 2019 now bears a 5.75% interest. The company has also lowered the rate on its €300m (US$400m) 7.5% senior secured term loan facility due 2019 to 6.25%.
As part of its “shift plan”, the French manufacturer is targeting €1bn in fixed-cost savings as well as €2bn in debt re-profiling over the period 2013-2015, and future debt reduction of €2bn. It will also look at asset sales.
Alcatel-Lucent said in June that the programme would reposition the loss-making company from a telecoms equipment generalist to “an industrial specialist in IP networking and ultra-broadband access”.
In its Q2 results the vendor said that it only had €450m debt set to mature before 2016 and registered total liabilities of €8.3bn debt.
