| NEW YORK
NEW YORK Dec 4 Telecom equipment maker
Alcatel-Lucent SA is close to inking an over 1 billion
euro refinancing to address upcoming maturities and back the
company's turnaround, banking sources told Thomson Reuters LPC.
Goldman Sachs and Credit Suisse will be leading the
transaction, with other banks including JP Morgan, Citi as well
as French banks joining the deal.
The financing, expected to be all loans, will be syndicated
in the U.S. given the size and appetite of the institutional
market and the company's operational foothold in North America.
"Institutional investors love a good loan-to-value story,"
said a U.S. banker following the transaction.
On November 15, Reuters reported the company said at a
Morgan Stanley conference that it was looking at options
including asset-backed financing to strengthen its balance
"[There are] three options, four options," said Chief
Financial Officer Paul Tufano at the investment bank's
Technology, Media and Telecoms conference. "We are doing the
research that it will provide the ability to take the
liquidity issue off the table. Specifics are actively being
worked out right now."
Tufano said the company was looking at measures with regard
in particular to convertible debt due in 2015.
In early November, Alcatel also said the company could sell
assets to strengthen its balance sheet after posting a second
straight quarterly loss. The company faces about 2.2 billion
euros in debt repayments through the end of 2015, with a major
deadline on Jan. 1, 2015, according to Reuters.
(Editing By Jon Methven)