By Rebecca Melvin
New York, June 2 - Alcatel-Lucent priced €1.04 billion of convertible bonds in two series under Regulation S, including €625.8 million of 5.5-year bonds and €418.4 million of 6.5-year bonds, according to a release.
The 5.5-year issue priced with a 0% coupon and a 40% initial conversion premium, which matched coupon talk and was at the rich end of 35% to 40% premium talk.
The 6.5-year issue priced with a 0.125% coupon and a 37% premium, and pricing came at the midpoint of the 0% to 0.25% coupon talk and at the rich end of the 32% to 37% premium talk.
The shorter-dated issue matures Jan. 30, 2019 and has an over-allotment option for €62.6 million of additional notes. The longer-dated paper matures Jan. 30, 2020, and has an over-allotment option for €41.9 million additional notes.
Proceeds are earmarked for partial or full reimbursement of the company's senior secured credit facility. If proceeds are insufficient to repay the entire facility, the remainder may be repaid with cash or by raising additional financing in the capital markets.
The bonds may be subject to an early redemption under certain conditions.
They have been rated B- by Standard and Poor`s and Caa1 by Moody`s. Settlement will be June 10, and an application is being made for listing on the Euronext Paris exchange.
Joint bookrunners on the deal were Credit Agricole CIB, Deutsche Bank, Goldman Sachs and Morgan Stanley, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets and Natixis.
Paris-based Alcatel-Lucent is a voice, data and video communication services provider.
| Issuer: | Alcatel Lucent
|
| Issue: | Convertible bonds
|
| Amount: | €1.04 billion
|
| Greenshoe: | €104.5 million
|
| Joint bookrunners: | Credit Agricole CIB, Deutsche Bank, Goldman Sachs and Morgan Stanley, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets and Natixis
|
| Pricing date: | June 2
|
| Settlement date: | June 10
|
| Stock symbol: | Euronext Paris and NYSE: ALU
|
| Stock reference price: | € 2.903
|
| Distribution: | Regulation S
|
| Market capitalization: | $10.8 billion
|
|
|
| Bonds due 2019
|
| Amount: | €625.8 million
|
| Greenshoe: | €62.6 million
|
| Maturity: | Jan. 30, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 40%
|
| Conversion price: | €4.11
|
| Price talk: | 0%, up 35%-40%
|
|
|
| Bonds due 2020
|
| Amount: | €418.4 million
|
| Greenshoe: | €41.9 million
|
| Maturity: | Jan. 30, 2020
|
| Coupon: | 0.125%
|
| Price: | Par
|
| Yield: | 0.125%
|
| Conversion premium: | 37%
|
| Conversion price: | €4.02
|
| Price talk: | 0%-0.25%, up 32%-37%
|
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