Vivendi Secures $5.13 Billion Loan For Activision Closing

Publisher Vivendi has announced it has secured a new loan of 3.5 billion euros ($5.13 billion) for the closing of both its Activision acquisition, and that of French telecom provider Neuf Cegetel "with complete security and flexibility." The company says the loan is underwritten by a pool of banks, 1.5 billion euros ($2.2 billion) of which will be in the form of a "bridging loan" that will be repaid when the Neuf Cegetel acquisition is complete. Another 2 billion euros ($2.93 billion) will come by way of a "revolver" facility that will be paid to Vivendi in parts, 1 billion over 3 years, and another over 5. "These new sources of financing supplement the EUR 4 billion ($5.86 billion) in unused credit lines (maturing in 2012)," said the company in a statement, "and available cash of more than EUR 1 billion ($1.47 billion) at the end of 2007. They will enable Vivendi to meet its future commitments with complete security and flexibility."