French vendor Alcatel-Lucent has upped its five-year convertible bond issue to €628.9m (US$821.2m) now the over-allotment option has been fully exercised.
The Paris-based company launched the issue, initially sized at €550m, on Wednesday (26 June),…
French vendor Alcatel-Lucent has upped its five-year convertible bond issue to €628.9m (US$821.2m) now the over-allotment option has been fully exercised.
The Paris-based company launched the issue, initially sized at €550m, on Wednesday (26 June), saying it could be increased to €630m if joint leaders and bookrunners for the issue chose to fully exercise the over-allotment option.
The number of bonds to be issued will therefore total about 349.4 million, Alcatel-Lucent said in a statement.
The expected date of issuance, settlement and delivery is 3 July.
The bonds, which pay interest of 4.25% to 5% and mature on 1 July 2018, were placed privately.
Deutsche Bank is global coordinator for the issue, while Credit Agricole and Morgan Stanley are joint lead managers and bookrunners.
Standard & Poor’s has rated the issue CCC, while Moody’s has rated it Caa1.
The new issue forms part of the Alcatel Lucent’s recently-announced “Shift Plan” designed 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.
