Telecom equipment maker Nortel Networks announced Wednesday that it plans to raise about $1 billion through a bond offering of senior notes. Bondholders will be able to convert the bonds into shares in Nortel. The Canada-based company announced that it ended the second quarter with about $5 billion in cash on its balance sheet and posted a loss from continuing operations of $1.55 billion on revenue of $4.61 billion for the quarter.
Nortel announced last June that it secured $2 billion worth of potential loans through the investment banks J.P. Morgan and Credit Suisse First Boston as well as through other financial institutions. Nortel also announced in February a $1.5 billion bond offering that would mature in 2006 underwritten by J.P. Morgan and Salomon Smith Barney. That same month, the company bought an optical component plant in Zurich, Switzerland, from JDS Uniphase for about $3 billion in stock.