Lucent sells $1.53 bln convertible bonds (LU) By Allen Wan
Lucent Technologies (LU) announced that it has raised $1.525 billion through a public offering of senior bonds that are convertible into common stock. The telecom giant said it expects to use the proceeds to pay down debt as well for general corporate purposes. Lucent sold $750 million of 20-year bonds and $775 million of 22-year bonds, all with a 2.75 percent coupon. The 20-year bonds are convertible into stock at $3.34, a 48-percent premium over the Thursday closing price of $2.26, and the 22-year bonds at $3.12, a 38 percent premium. The strong interest in Lucent's bonds is a good sign for the debt-laden companmy, which boosted the sale 17 percent from the initially planned $1.3 billion.
Lucent Technologies (LU) announced that it has raised $1.525 billion through a public offering of senior bonds that are convertible into common stock. The telecom giant said it expects to use the proceeds to pay down debt as well for general corporate purposes. Lucent sold $750 million of 20-year bonds and $775 million of 22-year bonds, all with a 2.75 percent coupon. The 20-year bonds are convertible into stock at $3.34, a 48-percent premium over the Thursday closing price of $2.26, and the 22-year bonds at $3.12, a 38 percent premium. The strong interest in Lucent's bonds is a good sign for the debt-laden companmy, which boosted the sale 17 percent from the initially planned $1.3 billion.