Small pieces of ALSTOM 's bank debt are believed to have traded after the company received shareholder support for a financing package. The French company has E1.25 billion in revolving credit maturing in April 2004, which is trading in the 96-98 range. The company has stated that the implementation of the financial package will allow ALSTOM to meet this maturity. But investors are still a "little bit nervous" because if it does not get paid down the bank debt could sink about 20 points, commented one sell-side official.
The company also has a E722 million revolver that matures in August 2006. The '06 bank debt was quoted slightly higher last week in the 76-80 range. "The bulk of the restructuring will be placed on last in line by maturity," explained one buysider. The company's new financing package will be provided by the French State and a syndicate of banks.
The package includes about E1.2 billion in equity and bonds reimbursable in shares. Another E1.5 billion will be obtained through two five-year subordinated loans. A E300 million loan will be provided by the French State and E1.2 billion will be provided by a syndicate of banks. ALSTOM is headquartered in France and specializes in energy and transport infrastructure. Corporate officials could not be reached by press time.