MURRAY HILL, N.J.-Lucent Technologies raised $1.525 billion through a public offering of convertible senior debt, which was priced at $1,000 per security. The company expects to apply the net proceeds toward the repayment or possible repurchase of certain short- and medium-term obligations over time, as well as for general corporate purposes.
The offering, which was made off the company’s existing universal shelf registration statement, consists of two series of debt.
The first series has a maturity date of 2023. These securities have an interest rate of 2.75 percent and are convertible into Lucent common stock at a conversion price of $3.34 per share, which represented a 48-percent conversion premium over the company’s May 29 closing price. Investors will have the option to redeem the securities in 2010, 2015 and 2020.
The second series has a maturity date of 2025. These securities have an interest rate of 2.75 percent and are convertible into Lucent common stock at a conversion price of $3.12 per share, which represents a 38-percent conversion premium over Lucent’s May 29 closing price. Investors will have the option to redeem these securities in 2013 and 2019.
