French vendor Alcatel-Lucent is looking to offer US$650m worth of senior notes due 2017 via its Alcatel-Lucent USA subsidiary.
Net proceeds will be used, together with available cash, to repay or redeem in full the US$931m outstanding of its 7.75%…
French vendor Alcatel-Lucent is looking to offer US$650m worth of senior notes due 2017 via its Alcatel-Lucent USA subsidiary.
Net proceeds will be used, together with available cash, to repay or redeem in full the US$931m outstanding of its 7.75% convertible trust preferred securities due 2017, the company said in a statement.
Moody’s has assigned a provisional B3 rating to the proposed offering.
This latest financing is part of the company’s “shift plan” announced in June 2013. The plan is targeting €1bn in fixed cost savings and asset sales of more than €1bn over 2013-2015. It is also aiming for €2bn in debt re-profiling and future debt reduction of €2bn.
A few days ago, Alcatel priced at par a US$250m bond offering to repay some debt. In early November, it also priced US$750m of 6.75% notes due 2020 via the US subsidiary.
Meanwhile, the company has conducted a capital increase totalling €956m (US$1.29m), and is planning on implementing a €500m (US$675.4m) syndicated revolving credit facility.
The company has mandated Ondra as financial adviser for the total financing package, which will push out the company’s debt maturities to 2016.
