Alcatel greenshoe fully exercised, lifting 5% Oceanes to €1 billion

By Devika Patel

Knoxville, Tenn., Sept. 3 - Underwriters for Alcatel-Lucent's offering of 5% 5.5-year convertible bonds in the Oceane structure exercised their over-allotment option in full for €130 million more of the bonds, increasing the size of the issue to €1 billion, the company announced in a press release.

As previously reported, the company sold the notes at par on Sept. 2 in a Regulation S offering via joint lead managers Calyon, Credit Suisse Group AG, HSBC Holding plc, Morgan Stanley and Societe Generale SA.

The notes have an initial conversion premium of 35% and a conversion price of €3.23.

The conversion ratio on the new bonds will be one new or existing share per bond.

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.

Paris-based Alcatel-Lucent provides solutions to deliver voice, data and video communication services to end-users.

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