Alcatel-Lucent is in the process of raising up to 1 billion euro by issuing convertible bonds to help it refinance its debt. The telecom equipment vendor carries about 4 billion euro in long-term debt. It also has large pension obligations from the former Lucent, which it funds in accordance with US pension laws. The new bonds will bear an interest rate of 5 to 5.5 per cent per year, payable semi-annually in arrears on January 1 and July 1 each year starting 2010. Meanwhile, Alcatel-Lucent has been shortlisted to buy Nortel Networks’ stake in LG-Nortel.
