French equipment maker Alcatel-Lucent has priced US$650m worth of 4.625% senior notes, via its US subsidiary, as it looks to repay some outstanding debt.
The company has also raised close to €1bn following the issuance of new shares last month.
The…
French equipment maker Alcatel-Lucent has priced US$650m worth of 4.625% senior notes, via its US subsidiary, as it looks to repay some outstanding debt.
The company has also raised close to €1bn following the issuance of new shares last month.
The notes, due in 2017, priced at 99.593 to yield 4.75%. Funds raised from the offering, together with additional cash, will be used to repay in full the US$931m outstanding of 7.75% convertible trust preferred securities due 2017, the vendor said in a statement.
Deutsche Bank, JP Morgan, Credit Suisse, BNP Paribas and Goldman Sachs are joint bookrunning managers for the offering.
On Thursday Moody’s assigned the notes a provisional B3 rating.
This transaction is part of a new strategy introduced in June to help slash financial expenditure. 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.
Separately, Alcatel-Lucent said it has raised around €956.7m (US$1.3bn) from a capital increase initially announced on 4 November 2013. The subscription period ended on 29 November 2013. Overall, it issued around 456 million new ordinary shares, which will be listed on NYSE Euronext Paris on 9 December 2013.
Merrill Lynch, Credit Agricole and Deutsche Bank acted as global coordinators while Citigroup, JP Morgan, Goldman Sachs, HSBC, Morgan Stanley and Natixis were joint bookrunners.
In addition to the capital increase and notes offering, the company is planning to implement a €500m (US$675.4m) syndicated revolving credit facility.
