By Rebecca Melvin
New York, Sept. 2 - Alcatel-Lucent priced €870 million of 5.5-year convertible bonds in the Oceane structure late Wednesday at par to yield a 5% with an initial conversion premium of 35% over its Euronext Paris-listed shares, according to a news release.
There is an over-allotment option for underwriters to purchase up an additional 14.9% of bonds, for a total of up to €1 billion of convertibles.
The amount was upsized from an initially talked €750 million base, with a €112.5 million greenshoe.
The deal priced at the rich end of talk, which was for a coupon of 5% to 5.5%, and was sold via joint lead managers Calyon, Credit Suisse Group AG, HSBC Holding plc, Morgan Stanley and Societe Generale SA.
Proceeds will be used to refinance the group's debt and to extend maturities, including all or part being used to repurchase its 4.75% Oceane convertible bonds due Jan. 1, 2011, of which about €1.022 billion is outstanding.
The conversion ratio on the new bonds will be one new or existing share per bond.
Paris-based Alcatel-Lucent provides solutions to deliver voice, data and video communication services to end-users.
| Issuer: | Alcatel-Lucent
|
| Issue: | Convertible bonds in Oceane structure
|
| Joint lead managers: | Calyon, Credit Suisse Group AG, HSBC Holding plc, Morgan Stanley and Societe Generale SA
|
| Amount: | €870 million, upsized from €$750 million
|
| Greenshoe: | €130 million, upsized from C$112.5 million
|
| Maturity: | Jan. 1, 2015
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 35%
|
| Conversion price: | €3.23
|
| Pricing date: | Sept. 2
|
| Settlement date: | Sept. 10
|
| Distribution: | Regulation S
|
| Stock symbol: | Euronext Paris: ALU
|
| Stock reference price: | €2.364
|
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