Agere repays $1 B in Lucent debt, modifies credit
Under an amended agreement with its banks, Agere Systems repaid $1 billion of the $2.5 billion debt it inherited from Lucent Technologies when Lucent sent the unit public in March.
Agere's deadline on the remaining $1.5 billion was extended from Feb. 21 to Sept. 30, 2002. The maturity date for undisclosed parts of it were extended to Sept. 30, 2004 — if Agere completes public or private debt or equity transactions with combined gross proceeds of more than $500 million before Sept. 30, 2002, Agere says in a statement.
The amendments also cover certain covenants of the original credit facility. Agere retained J.P. Morgan Securities Inc. and Salomon Smith Barney Inc. to arrange the agreement.
In late June, Agere announced a restructuring that entailed cutting 6,000 jobs, shutting down or selling facilities, and taking a $900 million charge for the year. The restructuring was to save the company about $520 million annually, it said then.