“With its net cash falling to 3.6 billion euros in September from 4.2 billion in June, and its credit ratings cut to junk over the past year, analysts have said the company needs to show a turnaround in the next several months if it is to survive,” Ando reports. “‘It is a rather cheap way to get extra financing,’ said Evli analyst Mikko Ervasti of the plan to issue convertible bonds, which are potentially most lucrative to investors when they are converted into shares several years after they are issued.”
Ando reports, “The convertible bonds will be due in 2017 and will pay a coupon between 4.25 percent and 5.00 percent. The initial price for conversion into ordinary shares is expected to be 28-33 percent above the average price of Nokia shares between the launch and pricing of the offering… The final terms of the convertible bonds, including the conversion price and maximum number of shares which may be issued upon conversion, will be announced later in the day. Trading in the bonds are due to start around October 26.”
Read more in the full article here.
MacDailyNews Take: Beleaguered Nokia is going to need a lot more than a mere 750 million euros to battle Apple and myriad peddlers of iPhone knockoffs.
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