Alcatel Sells Convertible Bonds in Reorganization of Debt

Alcatel-Lucent SA started a sale of convertible bonds and bought back old debt as part of the French telecommunications network-equipment maker’s strategy of reducing financing costs.

Alcatel-Lucent is selling 550 million euros ($719 million) of bonds that can be converted into or exchanged for shares on July 1, 2018, with the figure rising to as much as 630 million euros should an over-allotment option be exercised before the start of July. The bonds have an interest rate of 4.25 percent to 5 percent, the Paris-based manufacturer said today in a statement.