Du är här

2014-05-20

NOKIA: Nokia redeems EUR 800 million senior notes issued by Nokia Solutions and Networks Finance B.V.

Nokia Corporation

Stock exchange release
May 20, 2014 at 14.45 (CET +1)

Espoo, Finland - Nokia announced today that the EUR 800 million senior notes
issued in March 2013 by Nokia Solutions and Networks Finance B.V., the
finance company of its Networks business formerly known as NSN, will be
redeemed. The redemption is part of Nokia's planned EUR 5 billion capital
structure optimization program announced on April 29, 2014, which focuses on,
among other things, reducing interest bearing debt. Nokia has announced that
it plans to reduce interest bearing debt by approximately EUR 2 billion by
the end of the second quarter 2016. Once complete, the debt reduction is
expected to result in annual run rate savings of at least EUR 100 million
related to recurring interest costs. Furthermore, lowering its gross debt
level is aligned with Nokia's long-term target to return to being an
investment grade company.

The redemption of the EUR 800 million senior notes will result in annual
interest expense savings of approximately EUR 55 million, starting in the
third quarter 2014. In addition, it will eliminate certain covenants and
improve Nokia's overall debt maturity profile. The redemption of the notes is
also expected to result in a one-off cost of approximately EUR 100 million
impacting the second quarter 2014 results of the company.

In line with the above, Nokia Solutions and Networks Finance B.V., which is
the issuer of the notes, redeems all of its EUR 450 million senior notes due
2018 and EUR 350 million senior notes due 2020, each at their principle
amount plus the applicable premium and accrued and unpaid interest. The
mandatory redemption will be completed on or about June 19, 2014.

FORWARD-LOOKING STATEMENTS

It should be noted that Nokia and its business are exposed to various risks
and uncertainties and certain statements herein that are not historical facts
are forward-looking statements, including, without limitation, those
regarding: A) expectations, plans or benefits related to Nokia's new
strategy; B) expectations, plans or benefits related to future performance of
Nokia's continuing businesses Networks, HERE and Technologies; C)
expectations, plans or benefits related to changes in leadership and
operational structure; D) expectations regarding market developments, general
economic conditions and structural changes; E) expectations and targets
regarding performance, including those related to market share, prices, net
sales and margins; F) the timing of the deliveries of our products and
services; G) expectations and targets regarding our financial performance,
cost savings and competitiveness as well as results of operations; H)
expectations and targets regarding collaboration and partnering arrangements;
I) the outcome of pending and threatened litigation, disputes, regulatory
proceedings or investigations by authorities; J) expectations regarding
restructurings, investments, uses of proceeds from transactions, acquisitions
and divestments and our ability to achieve the financial and operational
targets set in connection with any such restructurings, investments,
divestments and acquisitions, including any expectations, plans or benefits
related to or caused by the transaction announced on September 3, 2013 where
Nokia sold substantially all of Nokia's Devices&Services business to
Microsoft on April 25, 2014 ("Sale of the D&S Business"); K) statements
preceded by or including "believe," "expect," "anticipate," "foresee,"
"sees," "target," "estimate," "designed," "aim", "plans," "intends," "focus",
"continue", "project", "should", "will" or similar expressions. These
statements are based on management's best assumptions and beliefs in light of
the information currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results that we
currently expect. Factors, including risks and uncertainties that could cause
these differences include, but are not limited to: 1) our ability to execute
our new strategy successfully and in a timely manner, and our ability to
successfully adjust our operations; 2) our ability to sustain or improve the
operational and financial performance of our continuing businesses and
correctly identify business opportunities or successfully pursue new business
opportunities; 3) our ability to execute Networks' strategy and effectively,
profitably and timely adapt its business and operations to the increasingly
diverse needs of its customers and technological developments; 4) our ability
within our Networks business to effectively and profitably invest in and
timely introduce new competitive high-quality products, services, upgrades
and technologies; 5) our ability to invent new relevant technologies,
products and services, to develop and maintain our intellectual property
portfolio and to maintain the existing sources of intellectual property
related revenue and establish new such sources; 6) our ability to protect
numerous patented standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property rights of
these technologies; 7) our ability within our HERE business to maintain
current sources of revenue, historically derived mainly from the automotive
industry, create new sources of revenue, establish a successful
location-based platform and extend our location-based services across devices
and operating systems; 8) effects of impairments or charges to carrying
values of assets, including goodwill, or liabilities; 9) our dependence on
the development of the mobile and communications industry in numerous diverse
markets, as well as on general economic conditions globally and regionally;
10) our Networks business' dependence on a limited number of customers and
large, multi-year contracts; 11) our ability to retain, motivate, develop and
recruit appropriately skilled employees; 12) the potential complex tax issues
and obligations we may face, including the obligation to pay additional taxes
in various jurisdictions and our actual or anticipated performance, among
other factors, could result in allowances related to deferred tax assets; 13)
our ability to manage our manufacturing, service creation and delivery, and
logistics efficiently and without interruption, especially if the limited
number of suppliers we depend on fail to deliver sufficient quantities of
fully functional products and components or deliver timely services; 14)
potential exposure to contingent liabilities due to the Sale of the D&S
Business and possibility that the agreements we have entered into with
Microsoft may have terms that prove to be unfavorable to us; 15) any
inefficiency, malfunction or disruption of a system or network that our
operations rely on or any impact of a possible cybersecurity breach; 16) our
ability to reach targeted results or improvements by managing and improving
our financial performance, cost savings and competitiveness; 17) management
of Networks' customer financing exposure; 18) the performance of the parties
we partner and collaborate with, and our ability to achieve successful
collaboration or partnering arrangements; 19) our ability to protect the
technologies, which we develop, license, use or intend to use from claims
that we have infringed third parties' intellectual property rights, as well
as, impact of possible licensing costs, restriction on our usage of certain
technologies, and litigation related to intellectual property rights; 20) the
impact of regulatory, political or other developments on our operations and
sales in those various countries or regions where we do business; 21)
exchange rate fluctuations, particularly between the euro, which is our
reporting currency, and the US dollar, the Japanese yen and the Chinese yuan,
as well as certain other currencies; 22) our ability to successfully
implement planned transactions, such as acquisitions, divestments, mergers or
joint ventures, manage unexpected liabilities related thereto and achieve the
targeted benefits; 23) the impact of unfavorable outcome of litigation,
contract related disputes or allegations of health hazards associated with
our business, as well as the risk factors specified on pages 12-35 of Nokia's
annual report on Form 20-F for the year ended December 31, 2013 under Item
3D. "Risk Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proven to be incorrect could cause actual results to
differ materially from those in the forward-looking statements. Nokia does
not undertake any obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or
otherwise, except to the extent legally required.

About Nokia
Nokia invests in technologies important in a world where billions of devices
are connected. We are focused on three businesses: network infrastructure
software, hardware and services, which we offer through Networks; location
intelligence, which we provide through HERE; and advanced technology
development and licensing, which we pursue through Technologies. Each of
these businesses is a leader in its respective field.http://company.nokia.com
Media Enquiries:
Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NOKIA via Globenewswire

HUG#1787244

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.