European vendor Nokia Siemens Networks (NSN) has priced €800m worth of upsized notes at par to pay down debt.
The company issued a €450m 6.75% bond due 2018, and €350m in 7.125% notes due 2020.
A spokeswoman said it had planned to sell only…
European vendor Nokia Siemens Networks (NSN) has priced €800m worth of upsized notes at par to pay down debt.
The company issued a €450m 6.75% bond due 2018, and €350m in 7.125% notes due 2020.
A spokeswoman said it had planned to sell only €600m of notes, but upsized the offering by €200m after its order book became “many times oversubscribed”.
JP Morgan and Credit Suisse are global coordinators and bookrunners for the issue. Barclays, BofA Merrill Lynch, Citigroup, Nordea, RBS and Societe Generale are also bookrunners.
NSN, a joint venture between Finland’s Nokia and Germany’s Siemens, had around €1.1bn in loans at the end of 2012.
As its cost cutting drive begins to show results, the notes issue is seen as a step away from its parent companies towards a potential float or sale of the business.
Commenting on the debt offering, NSN CEO Rajeev Suri said: “The response from investors to NSN’s transformation has been very positive.
“As we continue on our strategy to lead in the mobile broadband market, we look forward to a strong relationship with these new stakeholders”.
Last week the CFO of Siemens indicated that it was looking to exit the JV this year.
“I do believe that 2013 will be the time for Siemens to help NSN to move into a better place,” Joe Kaeser told a BofA Merrill Lynch investor conference on 20 March.
It is understood that a shareholder clause that prevented such a deal without Nokia’s permission will expire on 3 April, although Kaeser did not disclose any immediate plans to exit.
Nokia and Siemens last tried to find a buyer for the asset in 2011, but ended up having to pump in around €1bn of equity to keep the venture above water.
The companies declined to comment on the speculation.
