NEW YORK-SBC Communications Inc. entered into a one-year, $12 billion revolving credit agreement with investment and commercial banks to help fund its wireless subsidiary Cingular Wireless L.L.C.’s pending acquisition of AT&T Wireless Services Inc., according to an 8-K filing with the Securities and Exchange Commission.
SBC had previously reported that through its 60-percent ownership of Cingular it would be liable for around $21 billion of the total acquisition price. The company noted it would have between $8 billion and $11 billion cash on hand at the end of this year, and it would need to finance between $10 billion and $13 billion to fulfill its obligations.
The $41 billion acquisition is expected to be approved before the end of the year.
