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Nokia draws down on Microsoft financing
2013-09-09 08:58:00| Telecompaper Headlines
(Telecompaper) Nokia said it has decided to draw down on the EUR 1.5 billion financing option set forth in the recent deal inked with Microsoft. Microsoft agreed to acquire the mobile phone business of Nokia for EUR 3.79 billion, and pay an additional EUR 1.65 billion to license Nokia patents. The EUR 1.5 billion financing was also part of the acquisition, to take place as three EUR 500 million tranches of convertible notes. Nokia intends to use the proceeds to prepay financing raised for the acquisition of the shares in NSN, completed in August, and for general corporate purposes. The 2018 bond, or first tranche, will mature in five years, with a 1.125 percent per annum coupon and an initial conversion price of EUR 3.93. The second tranche, or 2019 bond, will mature in six years, with a 2.5 percent coupon and an initial conversion price of EUR 4.08. The 2020 bond, or third tranche, will mature in seven years, with a 3.625 percent coupon and an initial conversion price of EUR 4.23. Nokia will make an application to include the bonds for trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange as soon as reasonably practicable following the issuance date of the bonds. The maximum number of shares which may be issued by Nokia upon conversion of all the bonds is around 367.5 million, or 8.9 percent of Nokia's shares.
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Category:Telecommunications