Nokia looks to raise nearly $1 billion cash from a bond issue

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?

source: Nokia via Reuters



1. eisenbricher

Posts: 973; Member since: Aug 09, 2012

I don't understand financial stuff. Would anyone please be kind enough to explain this?

3. No_Nonsense unregistered

People invest into these bonds which will convert into Nokia shares in 2017. The investments done know will help Nokia strengthen its financial position a bit and those investing will get Nokia shares in 2017.

8. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

Liquidity (cash) is important for operational efficiency and Nokia is running very low on it. and true the convertible bond means investments done now will convert into shars in 2017 but keep in mind the share value at the time will be reflective of the company's position and may not be all that profitable an investment even if the allocated number of shares are high. In short they're turning to the public for money

9. No_Nonsense unregistered

But what happens in case Nokia is taken over by MS?

17. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

ususally in such scenarios the value of investment will be given back to the investora and the public, and the most common method is those people will be allocated MS shares. Lets say if Nokia stocks cost $100 and you invested $1000 so you're eligible for 10 shares but if Nokia is taken over by MS (which seems like the most likely scenario) and MS shares at the time are $200 each then you'll be eligible for 5 shares. Your investment doesn't go down the drain, you're given your money's worth in either case.

23. AamirSIII

Posts: 187; Member since: Oct 04, 2012

dude first thing, Liquidity is not cash it is the debt. and no its not good for the company at all. this is one of the reason why Nokia is going for this scheme of collecting some money for its operations.

26. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

Liquidity is an sset's ability to be sold without causing a significant movement in price and with minimum loss of value. MONEY or cash is the most liquid asset and can be used to perform economic activities like PAYING DEBT, buying, selling or meeting immediate wants and needs. Nokia is putting itself out there for the public to purchase and be a part of it because it is tight on liquidity. therefore when potential shareholders invest they're owning a small part of Nokia which is akin to owning Nokia's assets in a very tiny way. When you invest in shares you own a part of the company in varying proportions in turn raising money for the company. Hope this clears it up friend.

15. eXpensiveToiletePaper

Posts: 3; Member since: Oct 23, 2012

Elop were mastermining a way to steal more money from european The most expensive toilet paper

18. Muzhhur

Posts: 261; Member since: Sep 14, 2012

they buy debt in long term to get liquity in short term, its an ussual policy of any goverment in the world. its works like a credit card, you can buy it right now and pay in the next week

2. PhansMuneeb

Posts: 371; Member since: Jan 28, 2012

Go To Hell....from Hurted Nokia's fan

4. No_Nonsense unregistered

And what has Nokia done to go to hell? You are an Apple fan, bashing Nokia in this post and Samsung/LG/Sony/HTC/Oppo in the other.

5. PhansMuneeb

Posts: 371; Member since: Jan 28, 2012

No i am not and apple fanboy. And i am writing this fro Nokia Lumia 710. For choosing closed os and not choosing Android. Well i will sell these featurephone for a Samsung Galaxy S Advance

6. No_Nonsense unregistered

And now in grammatically correct English please.

13. Nathan_ingx

Posts: 4767; Member since: Mar 07, 2012

...and go through the spellings once for dictionary's sake!! @Phans

21. PhansMuneeb

Posts: 371; Member since: Jan 28, 2012

Look guys i don't hate Nokia. I hate wp (8 out 10 people get bored with it after using it for 1 month). ok i will explain. In my city, u will rarely find a public wifi and i don't have wifi connection. So i cannot download games over 20MB over cellular. What would have cost Microsoft to remove these Restrictions. While on Android i can download every size file, app or game. We can download songs and videos with Android Browser??, while in wp we can't. We can run games written in c++ even Android v2.2 while on wp7.8 we can't run games written in c++ for wp8 (so no devs support) I can get full Android 4.1 update if i purchase SGS Advance, while on NL710 i will get a taste of wp8 with wp7.8 to purchase Nxt generation Lumia.

7. -box-

Posts: 3991; Member since: Jan 04, 2012

@phans Android, while good, isn't the end-all be-all of mobile OSes. Something along the line - either already out, unknown, or a later iteration of itself - will replace it, and it will presumably keep changing. Competition is a good thing, and if Nokia can inspire Google and others to improve their OS, which in turn causes Microsoft and its subs to improve theirs along the way, so much the better. Windows Phone also isn't the lawsuit-magnet that Android is, which is a good way to save money in the courtrooms and fewer PR dollars wasted defending their name in the public spheres

16. eXpensiveToiletePaper

Posts: 3; Member since: Oct 23, 2012

AGREE!!! WP7 is only comparable to feature phone and should be sell less than US$ 140.... That's the things i keep writing in

22. SleepingOz unregistered

Welcome to the Galaxy Family. =)

10. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

I hope next year will be a better one for Nokia

11. xtroid2k

Posts: 601; Member since: Jan 11, 2010

I don't know why people get so talked up for. I understand that Nokia has put all its eggs in one basket. At least here is a company trying to be different from the rest. WP has been slow to catch on. And thus everyone is trying to put down Nokia. Ya know Android was not a superstar over night. So give Nokia And WP its props.

12. Nathan_ingx

Posts: 4767; Member since: Mar 07, 2012

Agree...Symbian wasn't born without glitch either. Everything (as in OS here) needs time to develop. And when they listen to customers' feedback, they grow more versatile and right on the spot of getting better and better. I'm sure Nokia is on the way of becoming something even greater irrespective of what OS (Symbian or WP) it adopts.

14. eXpensiveToiletePaper

Posts: 3; Member since: Oct 23, 2012

Xpensive Toilet Paper. Elop should be put behind the bar!!! This guy is a real criminal

19. mihaidenis

Posts: 23; Member since: Sep 09, 2012

Elopkia is dying with 920 as a stonegrave. Next year Apple will launch a twice high iphone than iphone 5. Yeah,baby.

25. lumialove

Posts: 75; Member since: May 16, 2012

I have been using lumia 710 for the last 6months and tell you,I haven't got bored a bit...infact I love more &more as it gets old. Love the simplicity and the beautiful UI of wp

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