French vendor Alcatel-Lucent has launched a €550m convertible bond issue which could increase to €630m if an over-allotment option is fully exercised. Deutsche Bank is global coordinator for the issue and Credit Agricole and Morgan Stanley are acting…
French vendor Alcatel-Lucent has launched a €550m convertible bond issue which could increase to €630m if an over-allotment option is fully exercised. Deutsche Bank is global coordinator for the issue and Credit Agricole and Morgan Stanley are acting as joint lead-managers and joint bookrunners.
The bonds will mature on 1 July 2018.
The new issue is part of the company’s recently announced “Shift Plan” – a restructuring plan over several years to reduce debt, improve profitability and reposition the equipment manufacturer as an IP networking and ultra-broadband specialist.
Cash raised from the new issuance will be used to repurchase convertible bonds maturing at the beginning of 2015.
The new bonds will pay interest of 4.25% to 5%.
Alcatel-Lucent’s long-term debt is rated Caa1 by Moody’s, with a negative outlook since December 2012.
