According to a report in the Financial Times, Vivendi is negotiating a 3.5bn euro ($3.8bn) to 4bn euro ($4.4bn) financing package. The newspaper said Vivendi is finalizing plans for a high-yield bond to raise at least 1bn euros ($1.1bn), and a new 2.5bn euros ($2.7bn) credit facility.
Vivendi’s creditors are also reportedly close to agreeing an extension of up to 12 months for a separate $1.6bn bridge loan tied to Vivendi Universal Entertainment (VUE), its US joint venture, which is made up of Universal Studios, theme parks, and cable television channels.
Vivendi is said to be considering either a partial asset sale of VUE, or an outright disposal. Last year, it received a $20bn offer for VUE from a consortium led by billionaire oil executive Marvin Davies. At the time, it rejected the offer, citing it as too low. However, it is known that Vivendi would consider an improved offer.
The group is burdened with a current net debt of 12.3bn euros ($13.5bn), down from nearly 19bn euros ($20.9bn) last year. The debt was incurred after ex-CEO Jean-Marie Messier went on an acquisition spree to turn the former water company into a global media giant, forcing Vivendi to the edge of bankruptcy. Jean Rene Fourtou was brought in as CEO and hastily began to sell off assets, but was recently involved in fending off Vodafone Group Plc, which had been seeking to gain control of one of Vivendi’s last remaining cash cows, Cegetel SA.
Source: Computerwire
