Bankers appear eager to bolster Lucent
Article Abstract:
Lucent Technology appears to be on track to raise the $6.5 bil it needs for its chief executive's restructuring plan. CEO Henry Schacht said that the telecom equipment makers offered to pay higher interest rates under the current proposal than it would if it drew on lines of credit. At the same time CFO Deborah Hopkins said banks who signed on would be first in line when it came time for Lucent to award asset management and other bank service contracts. Lucent is facing a $1.02 bil loss for the first quarter. The financing would prevent sale of more assets or further layoffs. About a dozen banks indicated they would participate.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2001
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Lucent gave banks in loan syndicate vow to limit losses
Article Abstract:
Lucent disclosed that the terms of its recent $6.5 bil loan included a clause limiting losses to $2.35 bil. The figure is based on the telecom equipment maker's earnings before interest, taxes, depreciation and amortization, or ebitda, over the next 3 quarters. Current net worth is $26.17 bil. Market capitalization is $42.85 bil. The telecom market has slowed along with the rest of the high tech industry. Lucent lost $1bil in the quarter ended Dec. 31.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
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