Nokia comments on S&P's credit rating announcement
Espoo, Finland - Timo Ihamuotila, Nokia's Executive Vice President and CFO, comments on today's rating decision from Standard & Poor's:
"With a strong positive gross and net cash position, Nokia was able to take advantage of an opportunity to fully own Nokia Siemens Networks and, we believe, create meaningful value for Nokia shareholders. We will continue to prudently manage our cash resources post-transaction."
Nokia's financial position remains strong
Nokia announced that it had entered into a definitive agreement to purchase Siemens' 50% stake in Nokia Siemens Networks earlier this week, with the transaction expected to close during the third quarter 2013. In the announcement, Nokia estimated its cash resources for the end of the second quarter 2013 to be between EUR 9.2 billion - EUR 9.7 billion in gross cash and between EUR 3.7 billion - EUR 4.2 billion in net cash. Additionally, for comparison purposes, Nokia estimated that if the transaction to purchase Siemens' 50% stake in Nokia Siemens Networks had been closed during the second quarter 2013, Nokia would have ended the second quarter of 2013 with gross cash of between EUR 9.2 billion - EUR 9.7 billion and net cash of between EUR 2.0 billion - EUR 2.5 billion, reflecting the deduction of the purchase price of EUR 1.7 billion from Nokia net cash.
Nokia notes that it also has access to additional liquidity via a revolving credit facility of EUR 1.5 billion, which is entirely undrawn and available to the company through March 2016. Nokia Siemens Networks also has a EUR 750 million revolving credit facility that is entirely undrawn and available through June 2015.
Further information on Nokia's debt instruments can be found in the company's Q1 2013 Interim Report issued on April 18, 2013.
- See more at: http://press.nokia.com/2013/07/05/nokia-comments-on-sps-credit-rating-announcement-2/#sthash.BmtG2ABj.dpuf
"With a strong positive gross and net cash position, Nokia was able to take advantage of an opportunity to fully own Nokia Siemens Networks and, we believe, create meaningful value for Nokia shareholders. We will continue to prudently manage our cash resources post-transaction."
Nokia's financial position remains strong
Nokia announced that it had entered into a definitive agreement to purchase Siemens' 50% stake in Nokia Siemens Networks earlier this week, with the transaction expected to close during the third quarter 2013. In the announcement, Nokia estimated its cash resources for the end of the second quarter 2013 to be between EUR 9.2 billion - EUR 9.7 billion in gross cash and between EUR 3.7 billion - EUR 4.2 billion in net cash. Additionally, for comparison purposes, Nokia estimated that if the transaction to purchase Siemens' 50% stake in Nokia Siemens Networks had been closed during the second quarter 2013, Nokia would have ended the second quarter of 2013 with gross cash of between EUR 9.2 billion - EUR 9.7 billion and net cash of between EUR 2.0 billion - EUR 2.5 billion, reflecting the deduction of the purchase price of EUR 1.7 billion from Nokia net cash.
Nokia notes that it also has access to additional liquidity via a revolving credit facility of EUR 1.5 billion, which is entirely undrawn and available to the company through March 2016. Nokia Siemens Networks also has a EUR 750 million revolving credit facility that is entirely undrawn and available through June 2015.
Further information on Nokia's debt instruments can be found in the company's Q1 2013 Interim Report issued on April 18, 2013.
- See more at: http://press.nokia.com/2013/07/05/nokia-comments-on-sps-credit-rating-announcement-2/#sthash.BmtG2ABj.dpuf
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