(RTTNews) -  Wednesday, communication equipment and services provider Alcatel-Lucent (ALU: News ) announced that it has now decided to increase the initial nominal amount for its offering of bonds convertible into and/or exchangeable for new or existing shares of Alcatel-Lucent due January 1, 2015 up to EUR 870 million from EUR 750 million announced earlier today.

The Paris, France-based company noted that the initial nominal amount might be increased by 14.9% to EUR 1 billion in the event that the over-allotment option granted to the Joint Lead-Managers and Joint Bookrunners of the offering is exercised in full at the latest on September 8, 2009.

Alcatel-Lucent said the primary objective of the offering is to contribute to the refinancing of the group's debt and the extension of its maturity, and, secondarily, to further enhance the group's financial position.

Further, the company stated that it might utilize all or part of the proceeds of the issue to finance the repurchase of part of the group's debt, including the bonds convertible into and/or exchangeable for new or existing shares due January 1, 2011, of which the principal amount outstanding is about EUR 1.02 billion.

The nominal value of each Bond would correspond to an issue premium of 35% over Alcatel-Lucent's reference share price on Euronext Paris, the company said. The conversion or exchange ratio of the Bonds would be one new or existing Alcatel-Lucent share per Bond, subject to potential further adjustments.
The Bonds would be issued at par on September 10, 2009 and would mature and be redeemed in cash at par on January 1, 2015. The Bonds may be redeemed early at the option of Alcatel-Lucent subject to certain conditions. In addition, the determination of the final terms of the issue is expected on September 2, 2009, and the expected date of issue and settlement and delivery for the Bonds is September 10, 2009.

The company added that the bonds would bear interest at a rate of between 5.00% and 5.50% per annum payable semi-annually in arrears on January 1st and July 1st of each year, commencing January 1, 2010, or if it is not a business day, the following business day. For the period from and including September 10, 2009, the issue date, up to and including December 31, 2009, the coupon would be payable on January 1, 2010 or on the following business day if such date is not a business day and will be calculated on a pro rata temporis basis.

Moreover, in France, the Bonds would initially be offered only in a private placement in accordance with article L. 411-2-II of the French Financial and Monetary Code. Following such placement and once the final terms of the offering would have been determined, a visa would be requested from the French Autorite des marches financiers on the offering Circular. Upon receipt of such visa, the Bonds would be offered to the public in France during the following three trading days.

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