Alcatel-Lucent pays $1.75 bn senior secured loan

Alcatel-Lucent has announced today that its affiliate Alcatel-Lucent USA has repaid on 19 August 2014 early and in full, the senior secured loan of an initial principal amount of $1.75 bn entered into on 30 January 2013.

This senior secured credit facility was secured by various first-priority pledges on a material portion of the Alcatel-Lucent Group’s assets, including substantially all patents and other intellectual property rights of Alcatel-Lucent USA, the company and other of the group’s affiliates. These pledges will be consequently cancelled and released.

The early repayment of the senior secured credit facility, for an outstanding amount of approximately $1.724 bn, has been implemented by using the proceeds from the issuance of bonds convertible into and/or exchangeable for new and/or existing shares of the Company maturing in 2019 and 2020 and by using Group’s available cash.

Commenting on the announcement, Michel Combes, CEO, Alcatel-Lucent said, “The early repayment of the senior secured loan taken out in January 2013 is another major milestone in our execution of The Shift Plan. Through the measures we have taken to strengthen our balance sheet, we have also been able to regain control of our own destiny, in particular, the release of intellectual property, giving us now the freedom and flexibility to leverage these assets as and how we see beneficial for Alcatel-Lucent’s future.”

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