Alcatel-Lucent bonds up on company's capital-raising plans

By Paul Deckelman

New York, Nov. 4 - Alcatel-Lucent SA's bonds firmed in early trading Monday on news that the French-American telecommunications network equipment maker plans to raise some $2.7 billion via the sale of new stock and debt.

The Paris-based company's 6.45% notes due 2029 firmed to 89½ bid in morning trading, a gain of 1½ points from their last previous round-lot levels on Friday. Volume was over $9 million, making it one of the busiest credits trading around on Monday so far.

The bonds firmed on news reports that Alcatel-Lucent plans to raise €955 million, or some $1.29 billion, by selling new shares and will issue bonds worth $750 million. Alcatel-Lucent said it has also secured a commitment for a new €500 million loan.

The company's New York Stock Exchange-traded shares meantime were quoted off 6 cents, or 1.54%, at $3.83 just before 11 a.m. ET on brisk volume of more than 17 million shares, versus the usual full-day turnover of about 22 million shares.

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