Ericsson Cancels $600 Million Revolving Credit Facility

STOCKHOLM -(Dow Jones)- Sweden's Telefon AB LM Ericsson (ERICY) Tuesday said it will cancel its $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.

The cancellation will take effect on Dec. 16.

"We adjust 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," said Karl-Henrik Sundstroem, executive vice president and chief financial officer. "Our commercial paper programs remain un-utilized. Canceling this facility will also be a significant cost saving."

Ericsson will retain its $1 billion 2007 committed credit facility.

(END) Dow Jones Newswires"

Posted to the site on 7th December 2004