Alcatel-Lucent kicks off $750 million seven-year notes, whispered in low 7% range; pricing later this week

By Paul A. Harris

Portland, Ore., Nov. 6 - Alcatel-Lucent USA Inc. plans to price a $750 million offering of seven-year senior notes (existing ratings B3/CCC+) on Thursday or Friday, according to a syndicate source.

An investor call was scheduled to take place on Wednesday.

The initial guidance has the deal coming with a yield in the low 7% range, according to a high-yield investor.

Joint global coordinator Citigroup Global Markets Inc. will bill and deliver. Credit Suisse Securities (USA) LLC is also a joint global coordinator.

BoA Merrill Lynch, Credit Agricole CIB, Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., Morgan Stanley & Co., Natixis Securities North America Inc. and UniCredit are joint bookrunners.

The Rule 144A and Regulation S for life notes come with three years of call protection, and feature an equity clawback of 35% at par, and a 101% poison put.

Proceeds will be used to refinance debt and for general corporate purposes.

The prospective issuer is a telecommunications equipment company based in New York and Paris.

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