European vendor Nokia Siemens Networks is reportedly planning to raise €700m through its first high yield bond offering.
According to the Financial Times, the company is considering issuing a Euro-denominated note, the proceeds of which would…
European vendor Nokia Siemens Networks is reportedly planning to raise €700m through its first high yield bond offering.
According to the Financial Times, the company is considering issuing a Euro-denominated note, the proceeds of which would predominantly be used to pay down debt.
NSN was not available for comment at the time of going to press.
Having failed to sell a majority stake in the business in 2011, NSN’s parent companies Finland’s Nokia and Germany’s Siemens pumped a further €1bn of equity into the company and announced a restructuring plan to significantly reduce costs.
As part of this, NSN secured a €1.255bn forward start facility at the beginning of 2012 and announced plans to cut 17,000 jobs by the end of this year.
In addition, the company has sought to sell its non-core assets in order to focus on its main mobile business.
At the end of 2012, the company sold its optical networks assets to US-based Marlin Equity Partners for undisclosed sum and less than a week later agree to a deal to sell it business support systems (BSS) unit to Canadian firm Redknee for €40m.
With the restructuring starting to bear fruit, NSN having reported profits in the past three fiscal quarters, speculation has grown that Nokia and Siemens might seek to resurrect the sales process or potentially float the business.
