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Nortel to Raise Big Bucks
By Mark Evans | March 22, 2007
Who’s got some money for Nortel? Any institutional investors willing to give Nortel a cool billion dollars or so? Well, it’s your lucky day as Nortel wants to sell $1-billion of senior unsecured convertible notes through two tranches - one that will mature in 2010 and another that will mature in 2014. Nortel said it expects to have $980-million of net proceeds ($1.125-billion if the over-allotment options are fully exercised). The proceeds will be used to redeem later this year at par a corresponding amount of its US$1.8 billion outstanding principal amount of 4.25% Convertible Notes due 2008.
Update: Here’s the pricing information - the notes will consist of US$500 million principal amount of senior convertible notes due 2012 and US$500 million principal amount of senior convertible notes due 2014. The 2012 Notes will pay interest semi-annually at a rate per annum of 1.750% and the 2014 notes will pay interest semi-annually at a rate per annum of 2.125%. The 2012 Notes and 2014 Notes will each be convertible into common shares of the company at any time based on an initial conversion rate of 31.25 common shares per $1,000 principal amount of Notes (which is equal to an initial conversion price of $32.00 per common share), in each case subject to adjustment in certain events.
Topics: Financials |