Alca-Lu to raise up to €1b for debt refinancing

Alcatel-Lucent will issue up to €1 billion worth of bonds as part of a debt refinancing.

The company initially issued a bond offer of up to €750 million, but later raised that amount to €870 million to meet unexpectedly high demand.
 
The joint lead-managers and bookrunners for the bond offer will also be granted an over-allotment option, taking the possible offer to €1 billion.
 
Each bond will be offered at a 35% premium over Alcatel-Lucent's average trading price on the Euronext stock exchange, will accrue interest at a rate of 5% per year, payable semi-annually, and will be convertible to cash on January 1, 2015.
 
The proceeds will be used to pay back Alcatel-Lucent's more pressing debts, including a bond offer of €1.02 billion due to mature in 2011.
 
Alcatel-Lucent's trading price on the Euronext fell 7.3% to €2.36 yesterday.