By Rebecca Melvin
New York, Oct. 23 - Nokia Corp. priced €750 million of five-year convertible senior unsecured bonds at par to yield 5% with an initial conversion premium of 28% above the volume weighted average price of Nokia shares on the Nasdaq Helsinki exchange between launch and pricing, according to a syndicate source.
The Regulation S deal came at the cheap end of talk, which was for a 4.25% to 5% coupon and 28% to 33% premium.
The bonds were sold via joint bookrunners Bank of America Merrill Lynch, Barclays, Citigroup and Deutsche Bank AG, with Bank of America Merrill Lynch acting as the settlement agent.
The notes are non-callable until Nov. 26, 2015 and then are provisionally callable subject to shares being at least 150% of the conversion price.
Nokia also has the right to redeem the bonds if conversion rights have been exercised for 85% or more of the principal amount. There is standard dividend and takeover protection.
Proceeds are intended to be used to manage its capital structure, to address upcoming maturities while preserving liquidity and for general corporate purposes.
Closing is expected on Oct. 26.
Nokia will apply to include the bonds for trading on the Open Market segment of the Frankfurt Stock Exchange.
Espoo, Finland-based Nokia is a wireless telecommunications equipment maker.
| Issuer: | Nokia Corp.
|
| Issue: | Convertible senior unsecured bonds
|
| Amount: | €750 million
|
| Maturity: | Oct. 26, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays, Citigroup, Deutsche Bank
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 28%
|
| Conversion price: | €2.6116
|
| Call: | Non-callable until Nov. 26, 2015, then provisionally callable subject to 150% price hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Oct. 23
|
| Settlement date: | Oct. 26
|
| Price talk: | 4.25%-5%, up 28%-33%
|
| Stock symbol: | NYSE: ADR: NOK
|
| Distribution: | Regulation S
|
| Market capitalization: | €7.68 billion
|
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