Nokia plans to sell €750 million five-year convertibles to yield 4.25%-5%, up 28%-33%

By Rebecca Melvin

New York, Oct. 23 - Nokia Corp. plans to sell €750 million of five-year convertible senior unsecured bonds to be offered at par and talked to yield 4.25% to 5% with an initial conversion premium of 28% to 33% above the pricing of shares on the Nasdaq Helsinki exchange between launch and pricing, according to a news release.

The Regulation S offering is being priced by joint bookrunners Bank of America Merrill Lynch, Barclays, Citi and Deutsche Bank, with Bank of America Merrill Lynch acting as settlement agent.

The convertibles will be non-callable for three-years and then 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.

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.

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