Press Esc to close
Tuesday 25 July 2017
News updated at 10:39 AM IST

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

New Delhi, Sept 7, 2013, (PTI) : 16:44 IST
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
The Jewish bagel served with a twist in funky colours at the ongoing International Food Festival...

The Jewish bagel served with a twist in funky colours at the ongoing International Food Festival...

Dark clouds seen over the Parliament house during the ongoing monsoon session in New Delhi...

Dark clouds seen over the Parliament house during the ongoing monsoon session in New Delhi...

Congress MPs Sushmita Dev, K Suresh and Gaurav Gogoi after they were suspended by the Speaker...

Congress MPs Sushmita Dev, K Suresh and Gaurav Gogoi after they were suspended by the Speaker...

Bolylywood actress Kajol and South Star Dhanush during the promotional press conference....

Bolylywood actress Kajol and South Star Dhanush during the promotional press conference....

Union Minister for Finance and Corporate Affairs Arun Jaitley with MoS Santosh Gangwar...

Union Minister for Finance and Corporate Affairs Arun Jaitley with MoS Santosh Gangwar...

MNS Party Workers protest against Chinese products at Airoli over ongoing rift between Indian...

MNS Party Workers protest against Chinese products at Airoli over ongoing rift between Indian...

School girls carry water to pour on Lord Shiva in Bhubaneswar on Monday...

School girls carry water to pour on Lord Shiva in Bhubaneswar on Monday...

Bollywood actors Arjun Kapoor, Ileana D'Cruz and Athiya Shetty during the promotion...

Bollywood actors Arjun Kapoor, Ileana D'Cruz and Athiya Shetty during the promotion...

Fire fighters dousing a fire that broke out at Lok Nayak Bhawan in New Delhi on Monday...

Fire fighters dousing a fire that broke out at Lok Nayak Bhawan in New Delhi on Monday...

National Disaster Response Force (NDRF) men rescuing a villager from a flood-hit area in Morbi...

National Disaster Response Force (NDRF) men rescuing a villager from a flood-hit area in Morbi...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.