Nokia to call €750 million bonds, plans exchange for Alcatel-Lucent Oceanes 2018, 2019, 2020

By Susanna Moon

Chicago, April 15 – Nokia Corp. said it plans a public exchange offer for Alcatel-Lucent’s Oceanes 2018, Oceanes 2019 and Oceanes 2020.

The exchange offer is related to the companies’ merger plans, in which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the United States, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share, according to a press release by Nokia.

The all-share transaction values Alcatel-Lucent at €15.6 billion on a fully diluted basis, which is a fully diluted premium of 34%, or €4.48 per share, and a premium to shareholders of 28%, or €4.27 per share, the release said.

This is based on Nokia’s (HEL: NOK1V) closing share price of €7.77 on April 13.

Nokia said it also plans to exercise an early repayment option for its €750 million convertible bonds in the fourth quarter of 2015.

The redemption is expected to result in the full conversion of the bonds prior to the closing of the planned merger with Alcatel-Lucent, with no expected cash outflow, the release noted.

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

The planned combined company would be based in Finland, with strategic business locations and major R&D centers in France. The business is expected to operate under the Nokia brand and will retain the Bell Labs brand to host its networks-focused innovation activities.

© 2015 Prospect News.
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