Nokia Planning on Bond LaunchOctober 23, 2012 1 Comment
“Nokia Corp. said Tuesday it aims to take advantage of favorable lending conditions and launch a bond offering to raise €750 million ($979.6 million)”
After posting another quarterly loss and further decreases to its cash reserves Nokia is seeking to ensure that it has the working capital in order to be able to prevent any disruptions to its operations. This bond offering is important as they have two big liabilities that will mature in the next 18 months including a €1.25 billion bond and a €750 million term loan.
‘”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,” said Timo Ihamuotila, Nokia’s chief financial officer.”
The offering will allow Nokia to continue to operate and innovate without interruption as its new product line launches. Hopefully the launch of the new Lumia line along with the release of Windows Phone 8 in the upcoming holiday season will help Nokia turn things around.