Nokia plans exchange offer for Alcatel Lucent’s convertible bonds

By Marisa Wong

Morgantown, W.Va., Sept. 29 – Nokia is planning a public offer to exchange Alcatel Lucent’s convertible bonds for Nokia shares, according to a prospectus filed with the Securities and Exchange Commission.

The exchange offer for the convertible bonds will be conducted alongside Nokia’s planned acquisition of Alcatel Lucent’s shares.

For each series of convertible bonds, the exchange ratio is expected to be 0.55 times the number of Alcatel Lucent ordinary shares issuable upon conversion of each bond of that series at the conversion ratio, which will be adjusted as result of the proposed public exchange offer.

The new Nokia shares issued under the exchange offer will be fungible with existing listed Nokia shares.

The initial offer period will last 25 trading days.

The offer will be subject to a minimum tender condition.

Holders may choose not to participate in the exchange offer. They will also be able to convert their bonds into Alcatel Lucent shares.

Holders will also have a put option in the event of a change of control, which would occur if Nokia owns more than 50% of Alcatel Lucent’s voting rights following the exchange offer or more than 40% if no other shareholder owns a higher percentage.

Espoo, Finland-based Nokia is a wireless telecommunications equipment maker. Paris-based Alcatel-Lucent is a voice, data and video communication services provider.

© 2015 Prospect News.
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