“Mobile phone maker Nokia plans to raise 750 million euros ($980 million) by issuing convertible bonds to bolster its cash position as it battles to claw back market share lost to Apple and Samsung,” Ritsuko Ando reports for Reuters.
“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.
Related articles:
The world’s worst CEO is NOT Microsoft’s Steve Ballmer, it’s Nokia’s Stephen Elop – October 19, 2012
Microsoft’s beleaguered Nokia Lumia sales fall 28 percent, North American sales cut in half – October 18, 2012
Beleaguered Nokia posts loss; says holiday quarter will be challenging – October 18, 2012
Haaaa…good luck with that. You’re anchored to a sinking ship.
Everyone misunderstood….. they are asking for James Bond. It is hoped that with his license to kill he would shoot Tim Cook and plant bombs at Apple.
007 could then enlist “Q” to come up with a real neat mobile shoe smart phone that would revolutionize the market. It would be popular with CEOs, analysts and Detractors who would not have to take their foot out of their mouths to
make calls when Nokia I’d back on top.
What is 750m going to do that the 3.6b they have can’t? I would have thought it was a long shot they’ll even be around in 2017
Elop’s golden parachute.
Hey brother,….Can you spare some change?
I’ve said it before and I’ll say it again. They sealed their fate when they hired Elop. Their last, best shot at returning to relevance was Maemo which Elop killed the second he took the helm.
No thanks, we picked up toilet paper at the market last week. Besides, I prefer the soft fluffy kind, those Nokia bonds are a little harsh.
During the Chinese All Souls’ Day or Qing Ming, piles of billions of Yuan Renminbi, Taiwan NT$ or Singapore$ denominated hell notes were teleported and all manner of durable goods like Mercedes Benzes, BMWs and iPhones were delivered to the departed. I think Nokia can take a leaf out of the Chinese book on how to be prosperous.
I thought Microsoft was paying Nokia to put their Windows crap on their phones. Can’t they just get Microsoft to pay them more?