Dealers estimate that $150 million of Xerox paper has changed hands over the past two weeks in the mid-80s range on news of the company's third-party financing agreement with GE Capital. Deutsche Bank is rumored to be active in the name, although officials there would not confirm their position. Deutsche Bank has put a $500 million credit for Xerox on hold as the financing agreement with GE Capital brings in $1 billion (LMW, 9/20). The company has also done asset sales and new product offerings to improve its standing.
Calls to Barry Romeril, cfo, were referred to spokeswoman Christa Carone. She referred inquiries to a Sept. 11 announcement that GE Capital will be the primary equipment financing provider allowing Xerox to remove receivables off its balance sheet. The agreement will allow Xerox customers to obtain the company's equipment through flexible financing options. "The third-party financing arrangement helps pay down the revolver," a market player explained. Xerox has a $7 billion facility which matures in 2002 and is priced at 15 basis points over LIBOR. BANK ONE, J.P. Morgan and Citibank are the lead arrangers.