Ericsson (Sweden) has decided to cancel its US$600 million revolving credit facility dated July 13, 2001, and amended June 20, 2002. The facility was established to provide financing for general corporate purposes, or as a backstop facility to support existing commercial paper programs. Ericsson will retain its 2007 US$1 billion committed credit facility. The cancellation will take effect on December 16, 2004.
"We adjusted our backstop facilities to better reflect our needs at the present level of business activities, the strong financial position and that there is no need for short-term funding," stated Executive Vice President and Chief Financial Officer Karl-Henrik Sundstrom. "Our commercial paper programs remain un-utilized. Canceling this facility will also be a significant cost savings."
