Lucent Gains New $6.5 Billion Line of Credit

Lucent Technologies (LU) said this morning it has successfully secured $6.5 billion in new financing.

The Murray Hill, N.J.-based communications equipment and software giant, which has faced more than its share of financial woes, said it obtained $4.5 billion of a new 364-day credit facilities, arranged by J.P. Morgan and Salomon Smith Barney. Earlier this week, the company said it was selling its fiber-optic unit that could reportedly fetch as much as $8 billion.

A portion of these new credit facilities replaces a $2 billion credit facility that expired Feb. 22, Lucent said, while the remaining $2.5 billion will be assumed by Agere Systems following its initial public offering. Agere's IPO is due to be one of the largest IPOs in U.S. history even though Lucent recently narrowed the projected price range of the upcoming offering.

The remainder includes an amendment to a $2 billion credit line that had been due in 2003.

"A critical element of our seven-point restructuring plan is now in place with these new agreements,'' Lucent said in a brief statement this morning. "We are now moving ahead totally focused on executing the turnaround of our business.''

Shares of Lucent closed Thursday at $12.53 on the New York Stock Exchange, sharply off its 52-week high of $75.38. The shares have a 52-week low of $11.50.

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