Deutsche Bank, Bank of America and Citibank have been tapped to lead a $1.77 billion short-term commercial paper backstop for Nokia Oyj, the Espoo, Finland-based mobile phone giant. Market participants said the facility is mostly a 364-day revolver, though a three-year tranche will be included in the deal. Officials at Nokia and the banks did not return calls before press time.
"Though telecom is suffering, Nokia is streets ahead of the competition and is cash rich," stated a banker at a European firm. Syndication should be helped by the likelihood that the credit will not be drawn down, she added. A date for the bank meeting has not yet been announced and terms of the deal could not be determined. Nokia is the largest seller of mobile handsets in the world and is aiming for the top of the nascent mobile Internet market.