Alcatel-Lucent to raise bonds to pay down $1.75B of debt

Alcatel-Lucent (NYSE: ALU) has launched a $1.4 billion offer in convertible bonds, which will be used to pay off the $1.75 billion on the company's senior secured credit facility in the U.S. as part of its Shift Plan.

The offering includes $816 million of bonds due Jan. 30, 2019, and $544 million maturing on Jan. 30, 2020.

However, the book runners have an option to increase the issues by up to 10 percent. 

Alcatel-Lucent said the bonds will be issued at a premium to Alcatel-Lucent's share price, at 35-40 percent for the 2019 bonds and 32-37 percent for the 2020 bonds. Set to be listed in Paris, they will pay little to no interest and be convertible one-to-one in Alcatel-Lucent shares.

Issuing these bonds is just one of many moves Alcatel-Lucent's CEO Michel Combes is making to get the company back on a solid financial footing. In addition to looking for a buyer for its enterprise division, the vendor shed its public sector division LGS Innovations in December for $200 million.

For more:
- see the release

Related articles:
Alcatel-Lucent core networking revenues jump 6.9 percent to $1.8B on strong IP routing, transport sales
Alcatel-Lucent IP routing down 5.2 percent, but Q4 optical transport soars
Alcatel-Lucent sheds public sector division LGS Innovations for $200M
Alcatel-Lucent searches for another buyer for its struggling enterprise unit

Suggested Articles

Tech Mahindra announced on Tuesday the launch of a dedicated Google Cloud Center of Excellence to help drive enterprises' digital transformations.

Juniper's enterprise and cloud divisions carried the day during the company's Monday earnings, which offset weakness in the service provider sector.

Arista Networks beat out some big names in its deal to buy Big Switch Networks, which came to light last week.