Alcatel-Lucent confirmed that Credit Suisse and Goldman Sachs are providing the financing for its new secured credit facilities. By Phil Goldstein.
After weeks of speculation about how it would bolster its finances, Alcatel-Lucent said it is receiving a $2.1bn loan from investment banks as the vendor looks to sell assets and cut costs. The company said that the loan will be backed up by its portfolio of 29,000 patents, among other assets. The firm will use the loan to pay off debt matures and shore up its balance sheet in a bid to reassure investors and customers alike about its solvency.
“We will take advantage of the flexibility provided by this new financing in order to aggressively look at all options to drive long-term sustainable profitability, enhance our strategic positioning and improve our balance sheet,” said Alcatel-Lucent CEO Ben Verwaayen.
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