Information Technology
Ericsson successfully launches Euro corporate bonds
Following a well-attended road show, Ericsson (NASDAQ:ERIC) has successfully placed one Euro denominated 500 million 4-year bond with a fixed coupon rate of 0.875% and one Euro denominated 500 million 7-year bond with a fixed coupon rate of 1.875%. The bonds were issued under Ericsson's Euro Medium Term Note Program (EMTN).
With this transaction, Ericsson extends its entry to the Eurobond market, one of the world's largest corporate bond markets, and takes advantage of strong current corporate credit market conditions.
The bonds will extend Ericsson's well diversified maturity profile and the proceeds will be used to refinance debt maturing in 2017 and for general corporate purposes.
Carl Mellander, acting CFO says: "This reconfirms market confidence in Ericsson and supports our strong balance sheet and financial flexibility."
Joint bookrunners were Citi, Credit Agricole CIB and SEB and co-managers were Nordea, Standard Chartered and Swedbank.
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