Retiring notes ahead of maturity
For example, the $300.0 million notes issued by ALU, which carry a 6.50% coupon, were set to mature in January 2028. The $1.4 billion notes issued by ALU, which carry a 6.45% coupon, were set to mature in March 2029. Then there’s the $1.0 billion worth of notes issued by Nokia and carrying a 5.38% coupon, which were set to mature in March 2019.
The idea behind retiring the notes early is that by doing so, Nokia can reduce its debt burden, especially the debt load at its ALU subsidiary.
Early tendering and repurchasing limits
In May 2017, Nokia announced a tender offer to repurchase some of these notes. It said on June 13 that the holders of these notes had tendered notes worth ~$1.5 billion. It also said that it would repurchase all ALU notes that were tendered within the early tendering period.
Positioning for 5G opportunity
Nokia acquired ALU to bolster its competition against Cisco (CSCO) and Ericsson (ERIC) in the telecommunications (or telecom) equipment market. These telecom equipment vendors are positioning themselves to ride the 5G (fifth-generation) network upgrade wave. Verizon (VZ) and AT&T (T) are among the carriers testing their 5G signals.
As shown in the chart above, Nokia’s 1Q17 revenue of 5.4 billion euros reflected a fall from over 5.5 billion euros a year earlier. However, the company’s 1Q17 revenue figure still beat the consensus estimate.
Nokia, whose earnings per share came in at -0.08 euros in 1Q17, could see its 2017 EPS rise 0.02 euros following the settlement of its patent dispute with Apple in June 2017.
Last week, Donald Trump blacklisted Chinese telecom giant Huawei Technologies amid rising US-China trade tensions.
This year has been a great one for Snapchat parent Snap (SNAP), and its stock has nearly doubled.
Coca-Cola (KO) will offer a limited edition of its of New Coke cans beginning May 23 as part of its partnership with Netflix’s (NFLX) show Stranger Things.
Clorox stock (CLX) is down about 8% since the company posted its third quarter of fiscal 2019 earnings on May 1.
JD.com (JD) recently invested ~$55 million in purchase a ~10% stake in Jiangsu Xinning Modern Logistics, a Chinese logistics company focusing on the consumer electronics supply chain.
Today, the US stock market was on a path of recovery after starting the week on a bearish note yesterday.