Nokia looks to raise nearly $1 billion cash from a bond issue
Nokia is undergoing a tough transition switching to Windows Phone and sales haven’t been exactly flourishing as the company had hoped. Nokia is bleeding cash by the millions each quarter, and now it announces it is planning to raise 750 million euros (around $980 million) by a convertible bond.
"This offering is designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market," Nokia CFO Timo Ihamuotila explained.
This money will help solidify Nokia’s liquidity in the near future and help deal with debt that matures soon. The bond will be convertible into ordinary Nokia shares in 2017.
What does this say about Nokia? Well not much except for the fact that it needs cash and the thinning interest rates due to the economic situation make this a good time to issue a bond like that. What are your thoughts on that?
"This offering is designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market," Nokia CFO Timo Ihamuotila explained.
What does this say about Nokia? Well not much except for the fact that it needs cash and the thinning interest rates due to the economic situation make this a good time to issue a bond like that. What are your thoughts on that?
source: Nokia via Reuters
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