Nortel Refinances Debt…Finally

With a mid-February deadline looming, Nortel has dealt with a debt financing by agreeing to a new one-year credit facility worth US$1.3-billion. JPMorgan Chase Bank, N.A., Citigroup Corporate and Investment Banking, Royal Bank of Canada and Export Development Canada have agreed to provide Nortel with a credit facility that consists of: a senior secured one-year term loan facility in the amount of US$850 million and a senior unsecured one-year term loan facility in the amount of US$450 million. It will be interesting to see how much Nortel will pay for the facility. One analyst suggested a five-year agreement would costs 9% annually.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: