While Microsoft's purchase of Nokia Device and Services Unit is a work in progress, Nokia has exercised an option to receive €1.5 billion ($1.975 billion US) from Microsoft ahead of the purchase closing.
Microsoft will deliver that amount in the form of convertible bond purchases from Nokia. Should the purchase be approved by Nokia's shareholders in November and becomes finalized, the bonds will be redeemed.
Alternatively, if Microsoft's purchase falls through, the bonds will have different maturity dates and can be converted into Nokia shares. In the press release announcing the option, Nokia intends to use the funds to pay down the debt created from its buyout of Siemens and for general corporate purchases.
Source: Nokia via: AllthingsD