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Lucent repays $1 billion outstanding on credit facilities, commitment reduced
New York, Nov. 30 - Lucent Technologies, Inc. said it repaid the $1 billion outstanding on its credit facilities on Nov. 20.
The company said in a filing with the Securities and Exchange Commission Friday that as of Sept. 30, 2001 it had $5.4 billion of net liquidity, made up of $2.4 billion of cash and equivalents and credit facility availability of $3.0 billion. The $1.0 billion outstanding on the credit facilities was repaid on Nov. 20, Lucent added.
On that same date, Lucent said, the total lending commitments under its credit facilities were reduced to $2 billion from $4 billion.
Lending commitments are reduced by certain debt reduction transactions or if Lucent generates additional funds from specified non-operating sources of more than $2.5 billion.
As of Nov. 16, the company had generated $4.5 billion from these non-operating sources. This was made up of $1.8 billion of proceeds from issuing redeemable convertible preferred stock, $2.1 billion of proceeds from the sale of its optical fiber business, $519 million of debt reduction from a debt for equity exchange with Morgan Stanley in conjunction with the Agere Systems Inc. spin-off, and the remainder from other transactions.
At Sept. 30 and before the commitment reduction, Lucent had a 364-day $2 billion credit facility expiring Feb. 21, 2002 and a $2 billion credit facility expiring Feb. 26, 2003.
The first $2 billion of additional funds results in termination of the 364-day facility. The remainder reduces commitments under the facility expiring in February 2003 although this facility cannot be reduced below $1.5 billion. Any outstanding borrowings above the commitments must be repaid.
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