Alcatel-Lucent USA, a wholly-owned subsidiary of French equipment vendor Alcatel-Lucent, has priced US$500m of 8.875% senior notes due January 2020.
The notes priced at 100% of their principal amount and are guaranteed on a senior unsecured basis by…
Alcatel-Lucent USA, a wholly-owned subsidiary of French equipment vendor Alcatel-Lucent, has priced US$500m of 8.875% senior notes due January 2020.
The notes priced at 100% of their principal amount and are guaranteed on a senior unsecured basis by Alcatel-Lucent and some of its subsidiaries.
Moody’s assigned a (P)B3 rating to the offering.
Proceeds will be used for the partial repayment of outstanding debt under its senior secured credit facilities announced earlier this year.
On 30 January, the vendor closed a €2bn (US$2.7bn) loan facility. Underwritten by Credit Suisse and Goldman Sachs, it was raised from a previously-announced €1.6bn following strong investor demand.
The US$500m offering, which will extend the average maturity of Alcatel’s debt, is part of the company’s “Shift Plan”, announced by in June 2013.
The cost-saving and debt re-profiling programme aims to reposition the company from a telecoms equipment generalist to “an industrial specialist in IP networking and ultra-broadband access”.
This includes plans to sell assets worth €1bn (US$1.3bn) by 2015.
Separately, CEO Michel Combes announced earlier this week that US-based Qualcomm will acquire a stake in Alcatel. The vendor is also looking to find other industry partners to take stakes in it as well, he said.