Nokia tenders for $1 billion of three series of euro, dollar notes

By Susanna Moon

Chicago, Feb. 22 – Nokia Corp. said it began tender offers for a maximum amount of €500 million 6¾% notes due Feb. 4, 2019, $300 million 6½% debentures due Jan. 15, 2028 and $1.36 billion 6.45% debentures due March 15, 2029.

The dollar notes were issued by Lucent Technologies Inc., the predecessor to Alcatel-Lucent USA Inc., Nokia's wholly owned subsidiary, according to a company announcement.

Nokia will accept up to a cash amount equal to $1 billion of the notes, with the 6¾% notes having first priority and the other two series given second priority.

The tender offers will remain open until 11:59 p.m. ET on March 21, with an early tender deadline of 5 p.m. ET on March 7. Pricing will be set at 11 a.m. ET on March 8.

For the first-priority notes, the early purchase price will be €1,128.37 per €1,000 of euro notes tendered by the early deadline, and the late purchase price will be €1,098.37 per €1,000 of euro notes, each assuming a settlement date of March 23. The fixed yield is negative 0.1%.

Pricing for the other two series of notes, the second priority notes, will be set using a reference security of 2¼% U.S. Treasury security due Feb. 15, 2027 plus a fixed spread of 285 basis points.

The total purchase price will include an early tender premium of $30 per $1,000 principal amount.

Nokia also will pay accrued interest to but excluding the settlement date.

Tendered notes may be withdrawn before the early deadline.

The joint dealer managers are Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558-3745, 212 723-6106 or liabilitymanagement.europe@citi.com), Deutsche Bank AG, London Branch (+44 20 7545 8011, 855 287-1922, 212 250-7527 or liability.management@db.com) and Merrill Lynch International (+44 20 7996 5420, 888 292-0070, 980 387-3907 or DG.LM_EMEA@baml.com). Nordea Bank AB (publ) (+45 6161 2996 or NordeaLiabilityManagement@nordea.com) is the joint dealer manager.

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or nokia@lucid-is.com).

Espoo, Finland-based Nokia is a wireless telecommunications equipment maker.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.