Press Esc to close
Tuesday 26 May 2015
News updated at 2:44 AM IST
Weather
Max: 33.3°C
Min : 22.5°C
In Bengaluru
Sunny day

Nokia to use $1.97 bn from Microsoft to pay off NSN financing

New Delhi, Sept 7, 2013, (PTI) :
File Photo

Finnish handset maker Nokia, which is selling its devices and services business to Microsoft, will borrow USD 1.97 billion from the US software giant to pay off loans taken to acquire the stake held by Siemens in their joint venture NSN.

In connection with the deal, Microsoft had agreed to make 1.5 billion euros of financing available to Nokia in the form of three tranches of 500 million euro (USD 658.77 million) convertible bonds.

The mobile phone maker has decided to draw down all the financing and will issue three tranches of senior unsecured convertible bonds, it said in a statement.

"Nokia intends to use the proceeds of the offering to prepay financing raised for the acquisition of the shares in NSN, which was completed in August 2013, and for general corporate purposes," the company said yesterday.

Microsoft last week agreed to acquire a major part of the devices and services business of Nokia and license its patents for about USD 7.2 billion. Nokia will keep its telecom network equipment arm NSN, mapping and location services (HERE), its CTO office and its patent portfolio.

In July, Nokia agreed to buy German engineering giant Siemens' 50 per cent stake in their mobile broadband joint venture NSN for 1.7 billion euros (USD 2.2 billion). The firm was renamed Nokia Systems and Networks (NSN).

The bonds are expected to be issued on or about September 23, Nokia said. The first tranche matures in five years and has a 1.125 per cent per annum coupon payable semi-annually with an initial conversion price of EUR 3.9338.

The second tranche of 2019 bonds has a 2.5 per cent per annum coupon payable semi-annually and an initial conversion price of EUR 4.0851.

The third tranche matures in seven years and has a 3.625 per cent per annum coupon payable semi-annually with an initial conversion price of EUR 4.2364.

Microsoft has agreed not to sell any of the bonds or convert them to Nokia shares before the sale of the devices and services business is closed, Nokia said. The transaction is expected to close in the first quarter of 2014.


Go to Top

Photo Gallery
Republican presidential candidate Ben Carson (R) talks with 91-year-old World War Two veteran Russel

Republican presidential candidate Ben Carson (R) talks with 91-year-old World War Two veteran Russel

Nepalese people walk across the damaged temple area one month after the deadly 7.8 magnitude ...

Nepalese people walk across the damaged temple area one month after the deadly 7.8 magnitude ...

Police charge Congress activists who were staging a protest at the residence of Madhya Pradesh ...

Police charge Congress activists who were staging a protest at the residence of Madhya Pradesh ...

AISA activists holding a protest against HRD Minister Smriti Irani on concerns over the choice ...

AISA activists holding a protest against HRD Minister Smriti Irani on concerns over the choice ...

Pramodadevi Wadiyar and Yaduveer Krishnadatta Chamaraja Wadiyar at a press conference in the ...

Pramodadevi Wadiyar and Yaduveer Krishnadatta Chamaraja Wadiyar at a press conference in the ...

Indians watch a chopper carrying Prime Minister Narendra Modi leave after addressing a rally at ...

Indians watch a chopper carrying Prime Minister Narendra Modi leave after addressing a rally at ...

Gujjar community people sleep on train track as they agitating to demand reservation in ...

Gujjar community people sleep on train track as they agitating to demand reservation in ...

Prime Minister Narendra Modi greets to crowd as actress and BJP MP Hema Malini and other leaders ...

Prime Minister Narendra Modi greets to crowd as actress and BJP MP Hema Malini and other leaders ...

Mumbai India and CSK Cricketers with IPL Trophy during photo session ahead of their IPL 2015...

Mumbai India and CSK Cricketers with IPL Trophy during photo session ahead of their IPL 2015...

Organically grown fruits and vegetables at ‘Pilikula Vasanthothsava’ at Pilikula in Mangaluru...

Organically grown fruits and vegetables at ‘Pilikula Vasanthothsava’ at Pilikula in Mangaluru...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523