Alcatel-Lucent wraps tenders for €440.72 million of three notes series

By Susanna Moon

Chicago, May 16 - Alcatel-Lucent said holders tendered €726,270,605 of notes in the offers for any and all of its €462,013,000 6 3/8% notes due 2014, up to €300 million of its €999,999,999 5% convertible bonds due 2015 and for some of its €500 million 8½% senior notes due 2016.

The tender offers expired at 11 a.m. ET on May 15, and settlement has been set for May 21.

The company accepted for purchase €440,726,304 of the tendered notes, including all of the 5% convertibles and 8½% notes tendered at or below the purchase price, according to a press release.

The breakdown for the accepted notes is as follows:

• €172,033,000 of 6 3/8% notes at a purchase price of 104.5% of par;

• €193,450,304 of 5% convertibles at €3.33 per €3.23 par value; and

• €75,243,000 of 8½% notes at 106.5% of par.

The company said that, as the 5% convertibles repurchased is less than 20% of the number initially issued, it will not undertake a standing repurchase order for holders of the outstanding notes but reserves the right to continue to repurchase the convertibles, as well as the two other series of notes, off or on the market.

Alcatel-Lucent previously said it would buy an amount of 8½% notes equal to €750 million less the total amount of 6 3/8% notes and 5% convertibles accepted for purchase in the offers.

Pricing for 5% convertibles and 8½% notes was set under a modified Dutch auction with a minimum price of €3.29 per €3.23 par value for the 5% convertibles and 106% of par for the 8½% notes.

The purchase price for the 5% convertibles was to include about €0.062 of accrued interest.

The company previously said the purpose of the offers is to proactively manage upcoming redemptions of its debt.

Holders needed to tender a minimum nominal amount of notes of €1,000 for the 6 3/8% notes, €3.23 for the 5% convertibles and €50,000 for the 8½% notes.

The dealer managers were Citigroup Global Markets Ltd. (+44 20 7986 8969, attn.: liability management group, email: liabilitymanagement.europe@citi.com) and Natixis (+33 1 58 55 08 14 / +33 1 58 55 02 27, attn.: liability management group, email alcatel-tender-offers@natixis.com).

The tender agent was Citibank, NA, London Branch (+44 0 20 7508 3867, attn: exchange team, email: exchange.gats@citi.com).

Alcatel-Lucent is a Paris-based telecommunications services and equipment company.

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