Nokia getting nearly $2 billion from Microsoft well ahead of deal closing

The company formerly run by Steven Elop, left, will receive $2 billion from Microsoft soon.

Microsoft and Nokia reached a $7.17 billion agreement to sell the latter company's smartphone business to the former company, though Nokia will receive about $2 billion from Microsoft soon to help pay for some current expenses.

Nokia's announcement, made late on Friday, revealed that Microsoft offered the company 1.5 billion euros (almost $2 billion) of financing as part of their Devices & Services deal. The money is in the form of three convertible bonds valued at 500 million euros each. Nokia said it is exercising its option to use those bonds this month.

Some of the money will be used by the company to help pay for the financing raised a few months ago for its buyout of Nokia Siemens Networks. That deal closed in August with Nokia now in full control of the subsidiary, now named Nokia Solutions and Networks. The rest of the bonds will be to pay for "general corporate purposes," according to Nokia.

If the Devices & Services deal with Microsoft happens to fall through, Nokia will have to pay the company's money back over a period of several years, or Microsoft could simply receive the equivalent in Nokia stock.

Source: Nokia | Image via Microsoft