An agreement with ABN Ambro Bank NV, Credit Suisse First Boston and other syndicated leaders reduces Oracle’s credit line from $5bn to $1.5bn of senior revolving credit.
Any load secured under the line of credit would be unsecured and mature 364 days from the initial closing date.
The credit line could be deployed in support of its $7.3bn offer to acquire PeopleSoft, although Oracle continued to stress its offer is not dependent on financing. The company said it lowered the credit line because it had enough cash on its balance sheet to fund the deal.
Oracle estimates it will need $7.5bn to complete the offer, a figure that includes fees and expenses. The company had $8.1bn of cash, cash equivalents and short term assets as of November 30, 2003 and said it could raise the money without the credit lines though loans or by issuing stock.
This article is based on material originally produced by ComputerWire.
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