Ericsson amends revolving USD 1 billion credit facility

Telefonaktiebolaget LM Ericsson has signed an amendment that improves the terms and conditions of its USD one billion revolving credit facility. The amended facility, maturing in September 2007 and structured as a forward start agreement (FSA), will replace the existing facility of USD one billion, which matures in September 2004.
Press release
Jul 01, 2004 06:30 (GMT +00:00)
As stated in the annual report 2003, the existing facility was subject to certain financial covenants and availability tests, which Ericsson would need to comply with prior to any drawdown and under certain circumstances, also required security to be offered as a condition to drawdown.

The amended facility does not have any requirement for security, nor an Availability Test. Further, the financial covenant structure has been simplified and the pricing of the facility has been adjusted to reflect current market conditions and the company's improved performance since the existing facility was signed in September 2003.

All of the core relationship banks that participated in the existing facility, ABN AMRO, BNP Paribas, Citigroup Credit Agricole Indosuez, Deutsche Bank, Goldman Sachs Credit Partners L.P., HSBC, JPMorgan, Morgan Stanley, Nordea, SEB Merchant Banking, Svenska Handelsbanken and Swedbank, also supported the amendment. The amendment was co-ordinated by ABN AMRO, Citigroup, Nordea and SEB Merchant Banking.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.