Alcatel-Lucent moves discounts on U.S. and euro term loans to 99½

By Sara Rosenberg

New York, Jan. 25 - Alcatel-Lucent USA Inc. tightened the original issue discounts on all of its term loans to 99½ from revised talk of 99 and initial talk of 98, and the Libor/Euribor floors were changed to 1% from 1.25%, according to a market source.

The debt includes a $500 million 31/2-year term loan, a $1.75 billion six-year term loan and a €300 million six-year term loan.

With these latest updates, the call protection on the six-year term loans was changed to 102 in year one and 101 in year two from non-callable for one year, then at 102 in year two and 101 in year three, the source said.

The 31/2-year loan still has 101 call protection for one year.

Pricing on the 31/2-year loan is Libor plus 525 basis points, after reverse flexing earlier in syndication from Libor plus 600 bps.

The U.S. six-year term loan is priced at Libor plus 625 bps. Previously, this tranche was upsized from $1.275 billion and pricing was cut from Libor plus 700 bps.

And, the euro six-year term loan is priced at Euribor plus 650 bps. Earlier, this loan was increased from €250 million and the coupon was reduced from Euribor plus 700 bps.

Recommitments were due at 5p.m. ET on Friday for U.S. investors and are due at noon ET on Monday for European investors.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the covenant-light credit facility.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Alcatel is a Paris-based telecommunications services and equipment company.

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