Alcatel-Lucent Issues $715 Million in Convertible Bonds

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As part of its Shift Plan, France-based Alcatel-Lucent will issue an initial $715 million in convertible bonds on July 3, 2013, rising to as much as $819 million if the over-allotment option is utilized in full by July 1, 2013, Alcatel announced today. The objective of the new debt, according to the company, is to "extend the maturity of the group's indebtedness."

The bonds will mature July 1, 2018 with a par value equal to a 30% to 37% premium to Alcatel's reference share price, with an annual interest rate between 4.25% and 5%, paid semi-annually. At maturity, the bonds will be convertible to "one new or existing Alcatel-Lucent share per Bond, subject to potential adjustments."

Alcatel's Shift Plan is an effort to reposition the company as an IP networking and ultra-broadband solutions specialist while reducing costs and "addressing its debt profile," the company said.


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