Alcatel-Lucent sets final terms on dual-currency term loans

By Paul A. Harris

Portland, Ore., Aug. 12 - Alcatel-Lucent USA Inc. priced a $1,741,250,000 term loan C due Jan. 30, 2019 (B1/B+) at par with an interest rate of Libor plus 475 basis points on Monday, according to a market source.

The deal came on top of spread talk that was reduced from previous talk of Libor plus 500 bps.

The term loan C has a 1% Libor floor and 101 soft call protection for six months.

The facility also has a euro-denominated tranche, a €298.5 million Euribor plus 525 bps term loan D due Jan. 30, 2019 (B1/B+) which also priced at par.

The euro loan, which came on top of spread talk, has a 1% floor and soft call protection for six months.

Proceeds will be used to reprice the existing term loan C from Libor plus 625 bps with a 1% Libor floor and the existing term loan D from Euribor plus 650 bps with a 1% Euribor floor.

The deal is expected to close on Friday.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

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

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