Alcatel-Lucent Announces Capital Increase - Quick Facts

(RTTNews) - Alcatel-Lucent (ALU) announced the launch of a capital increase for 955 million euros, its intent to launch a high yield bonds offering in an aggregate principal amount of US$750 million, and the execution of a commitment letter for the implementation of a new syndicated revolving credit facility of 500 million euros.

The purpose of the capital increase is to strengthen the equity of the company. The capital increase will be conducted by way of issuance of preferential subscription rights to holders of the company's existing ordinary shares. Holders of existing ordinary shares will receive one right for every existing ordinary shares held on the record date of November 18, 2013.

The subscription price for the new ordinary shares will be 2.10 per share euros on the basis of 8 new ordinary shares for 41 existing ordinary shares, resulting in the issuance of between 454,722,512 and 460,000,000 new ordinary shares. The gross proceeds of the capital increase are expected to be approximately 955 million euros.

The company noted that, subject to certain limited exceptions, the capital increase is not made available to holders of existing ordinary shares located in the United States or any other jurisdiction where such offer for sale of the new ordinary shares would be unlawful. For holders of the American Depositary Shares, rights attributed in respect of deposited existing ordinary shares are expected to be sold on their behalf on Euronext Paris before they lapse, Alcatel-Lucent said.