Ericsson has announced that it will accept for purchase notes with a nominal value of EUR 286.79 m. from the EUR 600 m. 5 percent Notes due 2013 and with a nominal value of EUR 154.52 m. from the EUR 375 m. Floating Rate Notes due 2014 (ISIN: XS0307504034) pursuant to the tender offers announced on 7 June 2012.
The 2013 Notes transaction is priced using an interpolated mid swap rate minus 20 basis points giving a purchase yield of 0.672 percent which leads to a purchase price of 104.346 percent. The 2014 Notes transaction is priced at 100.615 percent of the nominal amount of such Notes. Ericsson will also pay accrued interest in respect of those notes accepted for purchase. The settlement date will be 20 June 2012.
The notes are being purchased in order to reduce gross debt and improve Ericsson's net interest income.
Following completion of the tender offers, the remaining outstanding nominal amount of the 2013 Notes will be EUR 313.21 m. and of the 2014 Notes will be EUR 220.48 m.
Crédit Agricole CIB and Nordea Markets are acting as Dealer Managers for the tender offers.