TORONTO (Reuters) - Telecommunications equipment maker Nortel Networks Corp. (NYSE:NT - News; Toronto:NT.TO - News) and its operating company on Monday said they intend to make a shelf filing covering the sale of up to $2.5 billion of various types of securities in the United States and Canada.
The Toronto-based company, which has slashed jobs and posted losses in the slow-spending telecom market, said the filings will give it and its operating company, Nortel Networks Ltd., greater financial flexibility.
Nortel said it will file a shelf registration statement with the U.S. Securities and Exchange Commission and a preliminary base shelf prospectus with the Canadian securities authorities.
Under the filings, Nortel said it can offer common and preferred shares, subordinated and senior unsecured debt securities, warrants to purchase stock or debt securities and more. The Canadian filing remains valid for 25 months.
Nortel Networks Ltd. and Nortel Networks Capital Corp., a wholly owned indirect finance subsidiary, said they will withdraw their existing U.S. shelf registration statement related to an aggregate of up to $1 billion of debt securities.
Nortel Networks Corp. and its operating company also said they intend to file annual audited consolidated financial statements for 2001 to supersede previously filed statements. The new statements are unchanged but include supplemental financial disclosure.
The Toronto-based company, which has slashed jobs and posted losses in the slow-spending telecom market, said the filings will give it and its operating company, Nortel Networks Ltd., greater financial flexibility.
Nortel said it will file a shelf registration statement with the U.S. Securities and Exchange Commission and a preliminary base shelf prospectus with the Canadian securities authorities.
Under the filings, Nortel said it can offer common and preferred shares, subordinated and senior unsecured debt securities, warrants to purchase stock or debt securities and more. The Canadian filing remains valid for 25 months.
Nortel Networks Ltd. and Nortel Networks Capital Corp., a wholly owned indirect finance subsidiary, said they will withdraw their existing U.S. shelf registration statement related to an aggregate of up to $1 billion of debt securities.
Nortel Networks Corp. and its operating company also said they intend to file annual audited consolidated financial statements for 2001 to supersede previously filed statements. The new statements are unchanged but include supplemental financial disclosure.
