Finnish vendor Nokia is planning to issue €750m in convertible notes due 2017 through an accelerated book building process.
The notes will be convertible into ordinary shares and Nokia expects they will carry a coupon of between 4.25% and 5% when…
Finnish vendor Nokia is planning to issue €750m in convertible notes due 2017 through an accelerated book building process.
The notes will be convertible into ordinary shares and Nokia expects they will carry a coupon of between 4.25% and 5% when priced at par. This will be payable semi-annually in arrears, commencing from 26 April 2013.
According to the group, it will set an initial conversion rate at between 28% and 33% above the average price of shares it has listed on the NASDAQ OMX Helsinki exchange between the bond’s launch and pricing.
Final terms are expected later today, with closing scheduled on or around 26 October.
Timo Ihamuotila, Nokia’s CFO, said: “This offering is designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market.”
If the average price of the shares is at least 150% of the then prevailing conversion price for a specified period of time after the third anniversary, plus 30 days of the closing date, then Nokia has the option to redeem all the outstanding notes.
BofA Merrill Lynch, Barclays, Citi and Deutsche Bank are acting as joint bookrunners. BofA Merrill Lynch is acting as settlement agent in the offering.
After closing, Nokia aims to include the bonds on the Frankfurt Stock Exchange.
The Finnish vendor recently posted €7.2bn in Q3 revenue for 2012, compared with €8.98bn the year before. It posted an operating Q3 2012 loss of €576m, compared with a loss of €71m for Q3 2011.
