Alcatel-Lucent to raise €2.2 billion

Alcatel-Lucent has announced to raise €2.2 billion through three transactions- capital increase, high yeild bonds and syndicated revolving credit facility.

The company has announced the launch of a capital increase for an amount of €955 million, its intent to launch a high yield bonds offering in an aggregate principal amount of US$750 million and the execution of a commitment letter for the implementation of a new syndicated revolving credit facility of €500 million.

As part of the implementation of its transformation plan, The Shift Plan, Alcatel-Lucent announces three transactions aiming at strengthening its equity and at providing it with greater financial flexibility

The capital increase will be conducted by way of issuance of preferential subscription rights to holders of the company’s existing ordinary shares. Holders of existing ordinary shares will receive one right for every existing ordinary shares held on the record date of November 18, 2013. The subscription price for the new ordinary shares will be €2.10 per share.

The Rights will be issued and detached from the existing ordinary shares, and the subscription period will start, on November 19, 2013, and will end on November 29, 2013. Rights remaining unexercised at the end of the subscription period will expire.

Based on this subscription price, the gross proceeds of the capital increase are expected to be approximately €955 million. The purpose of the capital increase is to strengthen the equity of the company.

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