Nokia to raise 750 million euros to strengthen financial position
Ensuring medium term liquidity
Given difficult operating conditions as it awaits Windows Phone's success, Nokia is shoring up its finances.
So, despite currently having cash and other assets worth €8.78 billion (around $11.5 billion), it's going to tap up European and Asian institutional investors for €750 million (around $970 million).
This will be raised in the form of senior unsecured convertible bonds, which will convert in 2017 to ordinary Nokia shares.Cash in
The company will use the cash to "prudently manage its capital structure", dealing with its upcoming debt maturities and providing cash for investment and "general corporate purposes".
"This offering is designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market," said Timo Ihamuotila, Nokia's EVP and CFO.
The bonds are expected to carry a coupon (or interest) of between 4.25 percent and 5.00 percent per annum payable semi-annually in arrears on 26 April 26 and 26 October, starting on 26 April 2013.
[source: Nokia IR]