Fuente: © Nortel Networks
http://www.nortelnetworks.com/

Nortel Announces Proposed Senior Notes Offering

/noticias.info/ MAY 21, 2008

TORONTO – Nortel Networks* Corporation [NYSE/ TSX: NT] today announced that its principal direct operating subsidiary, Nortel Networks Limited ("NNL"), has commenced a proposed US$500 million offering of 10.750% senior unsecured notes due 2016 (the "Notes") in the United States to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), to persons outside of the United States pursuant to Regulation S under the Securities Act, and to accredited investors in Canada pursuant to applicable private placement exemptions, subject to market and other conditions. The Notes to be issued by NNL would be fully and unconditionally guaranteed by Nortel Networks Corporation ("NNC") and initially guaranteed by NNC's indirect subsidiary, Nortel Networks Inc. ("NNI").

The Notes would be issued as additional notes under an existing indenture and would be part of the same class as NNL's currently outstanding $450,000,000 aggregate principal amount of 10.750% senior notes due 2016 that were issued on July 5, 2006.

Nortel plans to use the net proceeds, together with available cash, to redeem at par $500 million outstanding principal amount of NNC's 4.25% convertible senior notes due 2008, of which $675 million principal amount are currently outstanding. NNC intends to issue a redemption notice with respect to that amount of 2008 convertible notes after the closing of the proposed offering and may redeem the balance of the outstanding principal amount of the 2008 convertible notes prior to their maturity on September 1, 2008.

The Notes and related Guarantees have not been registered under the Securities Act or the securities laws of any other place and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person except in transactions exempt from, or not subject to, the registration requirements of the Securities Act and applicable securities laws in other jurisdictions. The Notes and the related Guarantees would initially not be fungible for trading purposes with the currently outstanding 10.750% senior notes due 2016. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes and the related guarantees, nor shall there be any sale of the Notes and the related guarantees in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

* Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. notas_de_prensa_archivo