Alcatel-Lucent seeks €1.62 billion equivalent credit facility for debt refinancing

By Paul A. Harris

Portland, Ore., Dec. 14 - Alcatel-Lucent (B3/B) met with lenders on Friday in London to discuss a proposed €1,615,000,000 equivalent credit facility, according to a market source.

Meetings with lenders in the United States are set to commence on Monday.

The deal, which is being arranged by Credit Suisse Securities (USA) LLC and Goldman Sachs & Co., features two dollar-denominated tranches: a $1,275,000,000 six-year senior secured term loan and a $500 million 3.5-year asset sale facility.

The term loan is talked at a Libor spread of 700 basis points, discounted to 98.

The asset sale facility is talked at Libor plus 600 bps with a 1.25% Libor floor and 101 call protection in the first year.

There is also a €250 million six-year senior secured term loan tranche talked at Euribor plus 700 bps at 98.

Both term loans are callable after one year at 102.

The Paris-based telecommunications services and equipment company plans to use the proceeds to refinance debt.

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