Nortel Closes $2B Debt Offering

Nortel has closed its $2-billion senior notes offering with a three-tranche deal: $450 million of notes due 2016,S$550 million of notes due in 2013, and $1-billion of floating notes due in 2011. Nortel expects to use $1.3 billion to prepay a US$1.3 billion one-year credit facility that it did in February. The rest will be used for general corporate purposes such as replenishing recent cash outflows of $150 million for the repayment of 7.40% Notes due June 15, 2006, and $575 million deposited into escrow on June 1, 2006 as part of a class-action lawsuit settlement package.


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