Shearman & Sterling advised Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, London Branch, Goldman Sachs International and Morgan Stanley & Co. International plc as Joint Global Coordinators and Joint Bookrunners, as well as BofA Merrill Lynch, Barclays, Citigroup Global Markets Limited and Natixis as Joint Bookrunners, on a two-tranche issuance of bonds convertible into and/or exchangeable for new or existing shares (OCEANEs, the “Bonds”) launched on June 2, 2014 by Alcatel-Lucent (Euronext Paris and NYSE: ALU). This transaction is part of the company’s transition and transformation plan.

The offering comprised two tranches:

• a first tranche of an initial nominal amount of EUR 688,425,000 maturing on January 30, 2019 (the “2019 Bonds”); and
• a second tranche of an initial nominal amount of EUR 460,289,979.90 maturing on January 30, 2020 (the “2020 Bonds”).

The 2019 Bonds and the 2020 Bonds were issued, settled and delivered on June 10, 2014

The total proceeds of the issuance will be used to enable the partial or full reimbursement of the Senior Secured Credit Facility of an initial principal amount of $1,750 million entered into by Alcatel-Lucent USA Inc. and secured by various first priority pledges, which could be released if the aforementioned credit is reimbursed in totality. The purpose of the issuance is also to contribute to the extension of debt maturity and to reduce, if market conditions allow, the cost of indebtedness, particularly the amount of interest paid.

The Team