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Ciena to raise $250m for Nortel purchase
09 March 2010
Ciena, headed by Gary Smith, is to raise $250 million to fund its purchase of Nortel Networks’ metro ethernet unit
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Ciena
Nortel
metro ethernet
M&A
Ciena is planning to raise around $250 million in a debt sale. The convertible senior notes mature in five years. The telecom-networking company will use $243.8 million of the proceeds to replace its existing obligation to sell $239 million in 2017 notes as part of its purchase price for Nortel Networks’ metro ethernet unit.
The left over proceeds will add to the $530 million cash segment of the acquisition. The Nortel deal is expected to double Ciena’s strength. Ciena, headed by CEO Gary Smith, won the bid for the ethernet business assets of Nortel in November.
If the deal is not closed, Ciena will use the proceeds of the debt sale for general corporate purposes. GTB