Nortel to redeem $500 million of $675 million 4.25% convertibles

By Jennifer Chiou

New York, May 21 - Nortel Networks Corp. said it plans to redeem at par $500 million of its $675 million of 4.25% convertible notes due September 2008.

The company intends to use proceeds from principal direct operating subsidiary Nortel Networks Ltd.'s proposed $500 million offering of 10¾% senior unsecured notes due 2016 as well as available cash for the redemption.

The company will also pay accrued interest.

On Sept. 28, 2007, the company redeemed $1.125 billion of its $1.8 billion of 4.25% convertibles at par plus accrued interest.

The Brampton, Ont.-based company is a manufacturer and supplier of telecommunications networking equipment.

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