Ericsson completes tender offers for 5% notes, floaters due 2014

By Jennifer Chiou

New York, June 15 - Telefonaktiebolaget LM Ericsson (publ) announced the close of its tender offers for its €600 million of 5% notes due 2013 and €375 million of floating-rate notes due 2014.

According to a news release, the company will accept tenders for €286.79 million of the 5% notes and €154.52 million of the floaters.

The purchase price for the 5% notes is 104.346. It was set at 8 a.m. ET on June 15 using the interpolated mid-swap rate minus 20 basis points.

As announced, the purchase price for the floaters will be 100.615.

The company also will pay accrued interest to the settlement date on June 20.

Holders had to tender at least €50,000 of notes, in integral amounts of €1,000 after that.

As already stated, the reason for the purchase of the notes is to reduce gross debt and improve the company's net interest income.

Credit Agricole Corporate and Investment Bank (+44 20 7214 7408, attn: Steve Sahara or Jonathan Blondeau, e-mail: steve.sahara@ca-cib.com or jonathan.blondeau@ca-cib.com) and Nordea Bank Danmark A/S (+45 33 33 16 75, attn: Povl Bak-Jensen or Bibi Larsen, e-mail: NordeaLiabilityManagement@nordea.com) were the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880, fax: +44 20 7067 9098, attn: Thomas Choquet or Sunjeeve Patel, e-mail: ericsson@lucid-is.com) was the tender agent.

The telecommunication and data communications company is based in Stockholm. It launched the offer for up to €500 million of two series on June 7.

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