Ericsson Amends Credit Line

Ericsson ( ERICY) amended its $1 billion revolving credit line.

The Stockholm-based maker of equipment for wireless phone networks said the amended facility matures in September 2007 and is structured as a forward start agreement. The new deal doesn't have any requirement for security and doesn't call for an availability test.

Ericsson said in its 2003 annual report that its previous credit line was subject to covenants and availability tests, and that in some instances the company would be required to provide security in the event of a drawdown.

The company said all its core relationship banks -- ABN AMRO, BNP Paribas, Citigroup Credit Agricole Indosuez, Deutsche Bank, Goldman Sachs Credit Partners L.P., HSBC, J.P. Morgan, Morgan Stanley, Nordea, SEB Merchant Banking, Svenska Handelsbanken and Swedbank -- supported the amendment. The amendment was co-ordinated by ABN AMRO, Citigroup, Nordea and SEB Merchant Banking.

Ericsson shares have nearly tripled over the last year as the company has returned to profit after a long string of steep losses. The news comes as Ericsson continues to benefit from a wide-ranging restructuring it undertook last year. The company slashed thousands of jobs in narrowing its focus on products that customers are actually demanding.

On Thursday, Ericsson shares rose 18 cents to $30.08.

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