RLPC: Alcatel-Lucent cuts pricing on $2.65B loan again

NEW YORK Fri Jan 25, 2013 8:42am EST

NEW YORK Jan 25 (Reuters) - Alcatel-Lucent cut pricing for the second time on its $2.65 billion refinancing package slated to extend the French telecom equipment maker's maturities and lower costs, sources told Thomson Reuters LPC.

Today's price cut comes after the issuer increased the size and lowered the spread on both its 3.5-year and six-year tranches earlier this week.

The issuer cut the Libor floor on its $500 million, 3.5-year loan to 1 percent from 1.25 percent. At the same time, it tightened the issue price to 99.5 cents on the dollar from 99. A spread of 525bp over Libor was unchanged.

Pricing on the issuer's $1.75 billion, six-year first-lien loan and 300 million euro loan also was cut. The Libor and Euribor floor was cut to 1 percent from 1.25 percent and the issue price was tightened to 99.5 from 99.

The 3.5-year term loan benefits from 101 soft call protection. The six-year U.S. dollar-denominated and euro tranches are non-call for one year then at 102, 101.

Lender recommitments to the loans are due at 12 p.m. January 28 EST.

Earlier this week, the company increased the size of the six-year tranche and cut pricing across the board.

Previously, the six-year, first-lien term loan was split between a $1.275 billion U.S. dollar-denominated loan and a 250 million euro loan. Those tranches were launched with price talk of 700bp over Libor/Euribor, with a 1.25 percent Libor floor and a 98 OID.

The 3.5-year term loan was initially talked at LIB+600 with a 1.25 percent Libor floor and a 98 issue price. Credit Suisse and Goldman Sachs underwrote the financing, which is secured by the intellectual property portfolio of Alcatel-Lucent.

Alcatel-Lucent's U.S. subsidiary - Alcatel-Lucent USA - is the borrower on the new loan. (Editing By Jon Methven)