|
Investor Relations
 |
 |
Your Location: Home / News & Events / News Releases
Nortel Networks Announces Percentage for Fixed Dividend Rate on Series 8 Preferred Shares
TORONTO – Nortel Networks* Limited announced that the fixed dividend rate for its Non-Cumulative Redeemable Class A Preferred Shares Series 8 will be equal to 80% of the yield on five-year non-callable Government of Canada bonds to be determined on November 11, 2002. The Series 8 preferred shares will be issued as of December 1, 2002 to holders of Non-Cumulative Redeemable Class A Preferred Shares Series 7 of Nortel Networks Limited [TSE:NTL.PR.G] who exercise their right to convert their Series 7 preferred shares, on a one-for-one basis, provided that a minimum number of Series 7 preferred shares are tendered for conversion. If issued, the Series 8 preferred shares will pay, on a quarterly basis, as and when declared by the Board of Directors of Nortel Networks Limited, a cash dividend for the following five years based on this fixed rate, which will be published on or before November 14, 2002 in several Canadian newspapers. Holders of Series 7 preferred shares will receive a notice summarizing their conversion right.
Effective as of December 1, 2002, holders of Series 7 preferred shares who continue to hold such shares will begin to receive a monthly floating rate dividend as and when declared by the Board of Directors of Nortel Networks Limited, in lieu of the existing quarterly fixed rate dividend of 4.9%. The floating rate dividend will be based on the average prime rate of two Canadian banks in effect for each day of the month. The rate for December 2002 will be 80% of the prime rate, and for each succeeding month will be the previous month’s rate, adjusted based on the trading price of the Series 7 preferred shares, up to a maximum of 100% of the prime rate. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. *Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks. Contact for Press and Analysts:Business Media:
David Chamberlin
Nortel Networks
972-685-4648
ddchamb@nortel.com
Tina Warren
Nortel Networks
905-863-4702
tinawarr@nortel.com
Investors:
Nortel Networks
888-901-7286
905-863-6049
investor@nortel.com
Additional Media & Analyst Contacts
