Alcatel-Lucent plans to buy back up to 20% of Oceanes due 2011

By Jennifer Chiou

New York, Sept. 2 - Alcatel-Lucent announced that it intends to repurchase up to €204.5 million, or 20%, of its Oceans due 2011.

The company noted that the final amount will depend on indications of interest.

At the end of this process, Alcatel-Lucent said in a news release that it will repurchase, in off-market transactions exclusively from persons outside of the United States, 7,565,882 2011 Oceanes for a total of €126,350,229.

That figure makes up 11.97% of the 2011 Oceanes initially issued.

The purchase price is €16.70 per Oceane, including accrued interest.

The transaction is expected to take place on Sept. 11. The company added that it will cancel the acquired securities.

In other news, Alcatel-Lucent priced €870 million of 5.5-year convertible bonds in the Oceane structure late Wednesday at par to yield a 5% with an initial conversion premium of 35% over its Euronext Paris-listed shares, according to a separate news release.

There is an over-allotment option for underwriters to purchase up an additional 14.9% of bonds, for a total of up to €1 billion of convertibles.

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

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