Vivendi To Raise $1.4 Billion Via Bond Sales

Vivendi will reportedly raise $1.4 billion dollars through the April 1 sale of five and 10-year U.S. bonds in order to finance its planned acquisitions of Activision and Neuf Cegetel. In January 2008, Vivendi announced a $5.13 billion dollar loan to finance the acquisition, and the bond issue is intended to substitute its drawings from available bank facilities. In light of that loan, according to Forbes, Vivendi is aiming to re-balance its debt between bank loans and bond debt, and to extend its average maturity. $700 million in aggregate principal of the total comes from an agreement to sell 5.75 senior notes due in 2013, and the other $700 million comes from 6.625 percent senior notes due 2018. According to Forbes, the issue was transacted via a private offering to U.S. institutional buyers as well as international investors, and the sale of notes is expected to close April 4th.