Nokia Siemens Networks plans to flog bonds, raise €700m
VCs didn't want to cough cash, but maybe public will...
Nokia Siemens Networks is planning to go to the public markets to try to get some financing through high-yield bonds for up to €700m (£580m, $930m).
The telecoms equipment firm will be hoping that there’s enough investor appetite to make its bonds a good buy, meaning that some folks reckon the company is worth betting on.
People familiar with the plan told the Financial Times (behind paywall) that NSN would be issuing the bonds this spring and would use the money raised to pay off some debts and fund the business.
The company’s parents Nokia and Siemens tried to offload it onto private equity firms last year, but they weren’t able to get a deal going. Since then, the pair of firms have given NSN €1bn to rejuvenate its business, while its CEO Rajeev Suri has started cutting costs by selling businesses and axing jobs to the tune of 17,000 by the end of 2013.
As a result, NSN has made some money in the last three quarters, making it a more attractive proposition for either private equity or potentially the stock market, and giving one parent, Nokia, some funds to offset its troubles in mobiles. ®