Nokia has opted to take the EUR1.5 billion (US$2 billion) worth of financing from Microsoft in the completion of the deal where Microsoft was to acquire Nokia’s handsets subsidiary.
This decision, Nokia says will help them to take care of its financial situations as well as use the excess to repay financing raised for getting hold of the shares in NSN which was completed in August 2013 and for general corporate purposes.
Microsoft will not sell any of the Bonds o convert any to Nokia shares before to the closing of the deal; so if the sale of the hand set does not push through, Microsoft would have the power to sell the 2018 Bonds with immediate effect.
This also applies to the shares of the years that follow, in that, Microsoft should not sell the 2019 Bonds before the second anniversary of their issuance date and also the 2020 Bonds before the third anniversary of their issuance date.
Microsoft also has some limited rights to convert the bonds into Nokia shares for two year minimum.
