Alcatel-Lucent to raise up to 1 billion euro in bond issues (France)

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Alcatel-Lucent to raise up to 1 billion euro in bond issues (France)

September 15, 2009

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Alcatel-Lucent is in the process of raising up to 1 billion euro by issuing convertible bonds to help it refinance its debt. The telecom equipment vendor carries about 4 billion euro in long-term debt. It also has large pension obligations from the former Lucent, which it funds in accordance with US pension laws. The new bonds will bear an interest rate of 5 to 5.5 per cent per year, payable semi-annually in arrears on January 1 and July 1 each year starting 2010. Meanwhile, Alcatel-Lucent has been shortlisted to buy Nortel Networks' stake in LG-Nortel.