Two media giants struggling with varying degrees of debt-related stress moved to shore up their balance sheets and restore investor confidence Tuesday.
By far the
more urgent of the two, French conglomerate
coaxed a $1 billion loan out of five banks Tuesday to help it stave off a crash crunch.
reported that BNP Paribas, Citigroup, Credit Lyonnais, Credit Suisse First Boston and Societe Generale will lend the money, citing bankers who arranged the loan.
Vivendi last week fired Chief Executive Jean-Marie Messier and replaced him with French pharmaceuticals executive Jean-Rene Fourtou -- a step that was said to help expedite the loan, according to the company's bankers. The new money will be followed by a larger reorganization of the company's finances as Vivendi tries to roll over 3.8 billion euros of debt this month.
said its banks agreed to two new credit facilities totaling about $10 billion.
The New York media company will use the loans to replace two other facilities that expire later this year. Specifically, AOL closed a $6 billion, five-year revolving credit facility and a $4 billion, 364-day revolving facility They were arranged through a syndicate of 27 banks led by ABN Amro, Bank of America, BNP Paribas, Citibank and JP Morgan Chase.
AOL's shares were modestly higher on the news, adding 0.7% to $14.10 on the news.