The cloud hanging over Nokia's bond situation is $1.3 Billion in 5.5% notes due in Feb. of 2014. They'll have to roll those over, and as we get closer to the maturity date it will make going back to the bond market for more interim financing more and more difficult. In October of last year Nokia raised $980 Million with bonds to help finance their turnaround efforts. That event was far enough from the 2014 maturity that it raised questions but did not hamper the offering. As we get closer to 2014 it will be increasingly difficult (and eventually impossible) to do this again. I could see another ratings downgrade on Nokia's debt in the not too distant future which would negatively impact the current bonds.
I believe the NSN debt offering is a plus.
NSN is borrowing money for the first time independent of its parent companies.
Before profitability it was dependent on money from its parents Nokia and Siemens.
I bet this money is to get its affairs in order (pay off monies owed to Nokia and Siemens) before a spin off.