Alcatel-Lucent reached a €1.6 billion financing deal, gaining time to overhaul the French phone-equipment maker and try to sell as much as €1.5 billion of assets.

The senior secured credit facilities underwritten by Credit Suisse and Goldman Sachs will be denominated in US dollars and euros, with maturities of 3 1/2 to six years, said the Paris-based company yesterday.

The stock gained as much as 15 per cent and the company’s 8.5 per cent bonds jumped to the highest since in almost eight months.

The funding will allow Alcatel to “aggressively” consider all options to boost profitability, improve its strategy and shore up the company’s finances, chief executive Ben Verwaayen said in the statement. – (Bloomberg)