Redemption of USD 1.85 billion senior notes issued by Alcatel-Lucent USA Inc. as part of Nokia's planned capital structure op...
January 11 2016 - 10:22AM
Nokia announced today that the USD 1.85 billion aggregate principal
amount of senior notes issued by Alcatel-Lucent USA Inc.,
comprising the USD 650 million 4.625% notes due July 2017, USD 500
million 8.875% notes due January 2020 and USD 700 million 6.750%
notes due November 2020, will be redeemed in accordance with terms
and conditions of the notes. Alcatel-Lucent USA Inc. is a
subsidiary of Alcatel-Lucent S.A., the French company controlled by
Nokia. The redemption is part of Nokia's planned EUR 7 billion
capital structure optimization program announced on October 29,
2015, which focuses on, among other things, reducing
interest-bearing liabilities of the combined Nokia and
Alcatel-Lucent by approximately EUR 2 billion.
The notice of redemption has been sent today by
Alcatel-Lucent USA Inc. to the noteholders, and the redemption will
take place on February 10, 2016.
"We are pleased to move forward quickly with the
implementation of our capital structure optimization program," said
Timo Ihamuotila, Chief Financial Officer. "Lowering the Group's
gross debt level is in line with Nokia's long-term target of
re-establishing its investment grade credit rating".
Concurrent with the redemption of the Notes,
Nokia will provide Alcatel-Lucent USA Inc. with a temporary
revolving liquidity support facility until Nokia gains 100%
ownership of Alcatel-Lucent.
About Nokia Nokia is a global leader in the
technologies that connect people and things. Powered by the
innovation of Bell Labs and Nokia Technologies, the company is at
the forefront of creating and licensing the technologies that are
increasingly at the heart of our connected lives.
With state-of-the-art software, hardware and services for any
type of network, Nokia is uniquely positioned to help communication
service providers, governments, and large enterprises deliver on
the promise of 5G, the Cloud and the Internet of Things.
www.nokia.com
ENQUIRIES
Media Enquiries: Nokia Communications Tel. +358
(0) 10 448 4900 Email: press.services@nokia.com
Investor Enquiries: Nokia Investor Relations
Tel. +358 4080 3 4080 Email: investor.relations@nokia.com
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR
IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION
FORWARD-LOOKING STATEMENTS
This stock exchange release contains forward-looking statements
that reflect Nokia's current expectations and views of future
events and developments. Some of these forward-looking statements
can be identified by terms and phrases such as "believe," "will",
"would" and similar expressions. These forward-looking statements
include statements relating to: the redemption and repayment of
Alcatel-Lucent's and Alcatel-Lucent USA Inc.'s senior notes,
capital optimization program, the intragroup revolving credit
facility and Nokia's investment grade rating. These forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond our control, which could cause actual results
to differ materially from such statements. These forward-looking
statements are based on our beliefs, assumptions and expectations
of future performance, taking into account the information
currently available to us. These statements are only predictions
based upon our current expectations and views of future events and
developments. Risks and uncertainties include: the ability of Nokia
to integrate Alcatel Lucent into Nokia operations; the success of
the reopened offers; the performance of the global economy; and the
impact on the combined company (after giving effect to the
transaction with Alcatel Lucent) of any of the foregoing risks or
forward-looking statements, as well as other risk factors listed
from time to time in Nokia's and Alcatel Lucent's filings with the
U.S. Securities and Exchange Commission ("SEC").
The forward-looking statements should be read in conjunction
with the other cautionary statements that are included elsewhere,
including the Risk Factors section of the Registration Statement
(as defined below), Nokia's and Alcatel Lucent's most recent annual
reports on Form 20-F, reports furnished on Form 6-K, and any other
documents that Nokia or Alcatel Lucent have filed with the SEC. Any
forward-looking statements made in this stock exchange release are
qualified in their entirety by these cautionary statements, and
there can be no assurance that the actual results or developments
anticipated by us will be realized or, even if substantially
realized, that they will have the expected consequences to, or
effects on, us or our business or operations. Except as required by
law, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
HUG#1978042
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