Alcatel-Lucent opens standing repurchase orders for Oceanes in France

By Susanna Moon

Chicago, July 5 - Alcatel-Lucent said it opened the standing repurchase order on the market in France to purchase convertible bonds in the Oceane structure due Jan. 1, 2015 from July 5 to July 11.

The company will settle the standing repurchase orders on July 16, according to a company press release.

Alcatel-Lucent said on June 26 that it was committed to carrying out the repurchase order to ensure an equitable treatment among all Oceane holders.

The repurchase price will be €3.37, excluding accrued interest, per Oceane.

The repurchase order period is the five consecutive trading days from the day following the settlement and delivery date of the off-market repurchase, according to a previous press release.

This standing purchase order will be financed by proceeds from the bond issuance after the off-market repurchase and by the company's "own resources," the company said.

The company said on July 5 that it reserves the right to continue to repurchase the Oceanes on or off the market after the standing repurchase order.

Recent repurchase

The company said on June 26 that it repurchased 39.4% of the Oceanes through a reverse bookbuilding procedure via Deutsche Bank, Citi and Natixis.

As part of the repurchase, the company agreed to purchase 98,396,171 Oceanes, or 39.4% of the outstanding notes, for a price of €3.37, excluding accrued interest, per Oceane.

The company settled the bonds on July 4.

The buyback was conditioned on the issue of €550 million of five-year convertible bonds in the Oceane structure, which was launched June 26 with settlement slated for July 3.

Alcatel-Lucent had previously said that it would solicit from some holders outside the United States their interest in selling the Oceanes to the company.

After settlement, there is €488,730,062.91, or 48.87%, of Oceanes outstanding.

More repurchases completed

In a previous press release, the company said it also completed the offer to repurchase up to €300 million of 2015 convertible bonds from April 30 to May 15.

Under the offer, 59,891,735 Oceanes were repurchased for an aggregate amount of €199,439,477.55, or €3.33 per Oceane including accrued interest, according to a company press release.

As of June 26, there was €806,549,695.24 principal amount of 2015 Oceanes outstanding.

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

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