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NSN raises €1.2bn to overhaul operations
23 January 2012
Nokia Siemens Networks raises loan from 14 banks and has option to add more banks in the first quarter
Nokia Siemens Networks
Nokia Siemens Networks has raised over €1.2 billion from a group of 14 European and US banks, including JPMorgan, Citgroup and RBS among others, for its strategic overhaul, reports the Financial Times.
About €600 million will be provided on a one-year term set to end in 2013, while the rest is on a three-year term.
Nokia and Siemens, the Finnish and German companies that own NSN 50-50, last year tried to raise private equity investment in the group, but later injected €1 billion of equity of their own. In late 2011 Rajeev Suri, CEO of NSN, announced the company would lose 23% of staff and sell parts of the business.
NSN was looking to replace a soon-to-expire €2 billion debt facility, the FT reported. NSN has an option to add more banks in the first quarter and the firm will hope to raise capital by issuing bonds. The company is looking to strengthen its position in the market and will look to increase profitability via its mobile broadband business. The firm will also cut operational costs and overheads by around €1 billion by 2013, which is likely to result in further job cuts, according to the FT. GTB
Further reading from Global Telecoms Business:
NSN sells fixed broadband access unit 12 Dec 2011
NSN sells WiMax to private equity company 30 Nov 2011
NSN to lose 23% of staff in restructuring 23 Nov 2011
NSN sells microwave transport for €15m 04 Nov 2011
Nokia and Siemens pump €1bn into NSN 29 Sep 2011
NSN buys Motorola operation for $975m 03 May 2011