Interest Will Lead to Better Terms for Alcatel (ALU) in Financing Arrangement
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Alcatel-Lucent (NYSE: ALU) is expected to get more favorable terms in its recent bid to secure financing.
Arrangers said that there was oversubscription to Alcatel's €1.62 billion loan in syndication. Due to the interest, size of the loan might be increased while pricing could be tightened.
The loan -- announced last December -- is being issued by Goldman Sachs and Credit Suisse. It will allow Alcatel more time to implement a restructuring and turn around.
On Monday, Alcatel was said to get interest for its submarine-cable business. The company will have to sell certain assets as part of covenants tied to the loan agreement.
Shares are flat in early trading Tuesday after having closed nearly five percent higher yesterday.
Arrangers said that there was oversubscription to Alcatel's €1.62 billion loan in syndication. Due to the interest, size of the loan might be increased while pricing could be tightened.
The loan -- announced last December -- is being issued by Goldman Sachs and Credit Suisse. It will allow Alcatel more time to implement a restructuring and turn around.
On Monday, Alcatel was said to get interest for its submarine-cable business. The company will have to sell certain assets as part of covenants tied to the loan agreement.
Shares are flat in early trading Tuesday after having closed nearly five percent higher yesterday.
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