Ericsson has signed a long-term bilateral loan of USD 625 million with SEK (The Swedish Export Credit Corporation), partially backed by EKN (The Swedish Export Credit Guarantee Board) working capital guarantee. Ericsson intends to use the proceeds of the offering for refinancing of bonds maturing within the current and next year and for general corporate purposes. The loan will lengthen Ericsson’s average debt maturity profile and provide a more efficient capital structure.
It’s difficult to know exactly what to read in to this, apart from the obvious – but the fact that Ericsson have seen fit to announce this via a Press Release must mean they are very confident about the public impact (or rather lack of) that it may have.
Tough times at the moment, especially in the mobile space – but I am sure Ericsson will come out of this stronger.
[Via: Ericsson]