Alcatel-Lucent repurchases 39.4% 2015 Oceanes; more buybacks planned

By Susanna Moon

Chicago, June 26 - Alcatel-Lucent said it repurchased 39.4% of convertible bonds in the Oceane structure due Jan. 1, 2015 through a reverse bookbuilding procedure via Deutsche Bank, Citi and Natixis.

As part of the repurchase, the company agreed to purchase 98,396,171 Oceanes, or 39.4% of the outstanding notes, for a price of €3.37, excluding accrued interest, per Oceane, according to a company press release.

The company will settle the bonds on July 4.

The buyback is conditioned on the issue of €550 million of five-year convertible bonds in the Oceane structure, which was launched June 26 and is expected to settle on July 3.

Alcatel-Lucent had previously said that it would solicit from some holders outside the United States their interest in selling the Oceanes to the company.

Buybacks planned in France

The company said that, in order to ensure an equitable treatment among all Oceane holders, it is committed to carry out a standing repurchase order on the market in France.

The repurchase price will be €3.37, excluding accrued interest, per Oceane.

The company said it will purchase 2015 Oceanes on the market in France from July 5 to July 11, or the five consecutive trading days from the day following the settlement and delivery date of the off-market repurchase.

This standing purchase order will be financed by proceeds from the bond issuance after the off-market repurchase and by the company's "own resources," the company said.

More repurchases completed

In a separate press release, the company said it also completed the offer to repurchase up to €300 million of 2015 convertible bonds from April 30 to May 15.

Under the offer, 59,891,735 Oceanes were repurchased for an aggregate amount of €199,439,477.55, or €3.33 per Oceane including accrued interest, according to a company press release.

As of June 26, there was €806,549,695.24 principal amount of 2015 Oceanes outstanding.

Paris-based Alcatel-Lucent provides solutions to deliver voice, data and video communication services to end-users.

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