Ina Fried

Recent Posts by Ina Fried

Nokia Taps Option for Nearly $2 Billion in Bond Financing From Microsoft

One of the many terms of the Microsoft-Nokia megadeal is an option for Nokia to get 1.5 billion euros ($1.975 billion) from Microsoft ahead of the transaction’s closing.

james_bond

Nokia said on Friday that it indeed wants the full amount, which it will pay for by issuing a series of bonds to Microsoft.

If Microsoft’s deal to acquire Nokia’s device unit is completed, the bonds will be redeemed from the purchase price. Otherwise, they have different maturity dates, and are also convertible into Nokia shares.

In a statement, Nokia said it will use the money to pay down debt from its buyout of Siemens in their network equipment joint venture, as well as for the catch-all “general corporate purposes.”

RELATED POSTS:


Latest Video

View all videos »

Search »

Another gadget you don’t really need. Will not work once you get it home. New model out in 4 weeks. Battery life is too short to be of any use.

— From the fact sheet for a fake product entitled Useless Plasticbox 1.2 (an actual empty plastic box) placed in L.A.-area Best Buy stores by an artist called Plastic Jesus