A group of 14 U.S. and European banks has loaned Nokia Siemens Networks more than $1.56 billion to help the company restructure its business and pay costs of its redundancy program. According to Reuters, the company was originally hoping to raise close to $2 billion but market turmoil made that impossible and the company had to settle for the smaller amount.
Parents Nokia and Siemens funneled $1.3 billion into NSN last year after attempts to sell the business failed. At that time NSN said it would not ask either company for additional funding.
NSN announced in November it would shed or shutter unrelated businesses and focus exclusively on the mobile broadband market. The company also said it would cut 17,000 workers by 2013, for a total cost savings of around $1.34 billion. The removal of 17,000 positions will reduce NSN's total workforce by 23 percent.
Since that November announcement NSN has sold several of its business units. In December it sold its wireline business to Adtran and its WiMAX business NewNet Communication Technologies, which is backed by private equity firm Skyview Capital. In November, NSN sold its microwave business unit to DragonWave.
The infrastructure company has struggled to make a profit since it launched in 2007. Like many of its competitors, NSN has faced aggressive pricing from Chinese entrants such as Huawei and ZTE.
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