Vivendi Said to Seek $2 Billion of Loans to Refinance Debt
Vivendi SA (VIV), the owner of record company Universal Music Group, is seeking to raise 1.5 billion euros ($2 billion) of loans to refinance existing debt, according to two people with knowledge of the matter.
The company has asked lenders to propose terms for a five- year credit line, said the people, who asked not to be identified because the terms are private. The request for proposals includes an interest margin of 85 basis points more than the euro interbank offered rate, they said. A basis point is 0.01 percentage point.
Paris-based Vivendi signed a 1.5 billion-euro five-year revolving credit facility paying an 85 basis-point margin in January 2012, according to data compiled by Bloomberg. The company is rated Baa2 by Moody’s investors Service and BBB by Standard & Poor’s, the second-lowest investment-grade rank, the data show.
Solange Maulini, Vivendi’s director of press and shareholder relations in Paris, declined to comment on the financing.
To contact the reporter on this story: Stephen Morris in London at firstname.lastname@example.org
To contact the editor responsible for this story: Faris Khan at email@example.com