Vivendi takes $7.2 bn loan to finance SFR deal

PARIS, FRANCE: European telecom and media group Vivendi said it has taken out a 5 billion euros ($7.2 billion) syndicated loan from 15 banks, in part to finance the buyout of minority shareholders in its French telecom unit SFR.

The company was expected to take out a loan of 3 billion euros for the acquisition of Vodafone's 44 per cent stake in SFR, but is also taking the opportunity to refinance some of its other obligations, pushing back maturities.

Vivendi said that after the SFR transaction was completed, it would have at least 2 billion euros in undrawn credit lines.

"This loan will enable the company to increase its financial security and extend the maturity of its debt," Vivendi said in a statement.

The loans are in three tranches, with 1.5 billion euros due at the end of 2012, and a further two tranches with 3 and 5-year maturities.