Nokia bonds gain on Apple/Samsung patent ruling; Dynegy plan OK'd by creditors, debt inches up

By Stephanie N. Rotondo

Phoenix, Aug. 27 - Nokia Corp. was the distressed debt market's notable mover Monday, as the company's bonds rose 2 points or more on the back of a verdict in the Apple-Samsung patent case.

The outcome, which favored Apple, could prove to be a positive for the Finnish wireless telecommunications equipment manufacturer.

Meanwhile, Dynegy Holdings LLC's debt was "mildly stronger," a trader said, after the company announced it had received creditor approval on its plan of reorganization.

Overall, a trader said it was an "ultra-low volume day."

"It's ultra-dead," quipped another trader.

Nokia bonds benefit

Nokia's bonds gained 2-plus points on the day following Friday's federal jury verdict on favor of Apple against Samsung.

A trader said the 6 5/8% notes due 2039 "rallied" nearly 2½ points to 811/4. The 5 3/8% notes due 2019 meantime earned 2½ points, ending around 86.

Another trader said the bonds were "up a bit," the 2039 paper at 81 and the 2019 maturity around 86.

The stock (NYSE: NOK) rose 17 cents, or 5.52%, to $3.25, the low-end of the day's range. The equity had gotten as high at $3.39.

On Friday, a jury said that some of Samsung's products infringed on Apple patents. The news was seen as a positive for Nokia, which was recently ousted from the No. 1 cellphone maker spot by Samsung.

Because of the decision in the Apple/Samsung case, Samsung might have to delay certain developments for devices that utilize the Android operating system. This could give Nokia, which uses a Windows operating system, time to retake its top position in the mobile phone market.

Creditors OK Dynegy plan

A trader said Dynegy Holdings' 8 3/8% notes due 2016 were "mildly stronger" as the company said creditors near unanimously approved its plan of reorganization.

He quoted the issue at 61½ bid, 62 offered.

Still, he noted that trading in the credit was "on the quieter side, I thought it would be more active."

The Houston-based power producer said Monday that creditors holding about $3.5 billion, or about 99%, of claims have agreed to support the reorganization plan.

A confirmation hearing is scheduled for Sept. 5.

Under the terms of the plan, creditors will receive anywhere from 59 cents to 89 cents on the dollar in cash and equity.

The company filed for bankruptcy in July.

PDVSA up, ATP steady

In the oil arena, Petroleos de Venezuela SA's 9¾% notes due 2035 were a point higher, according to a trader, despite a massive fire at one of its refineries.

The trader placed the notes around 79.

The blaze at the Amuay refinery in Venezeula began Sunday and has thus far killed 41 people. The refinery is the largest in the country, producing 645,000 barrels per day.

Meanwhile, ATP Oil & Gas Corp.'s 11 7/8% notes due 2015 were deemed up a point at 26¼ by one trader. However, another trader said the issue was unchanged at 26 bid, 26½ offered.

A third trader called the notes active, but holding in around 26.

"Obviously it's on peoples' minds with the hurricane and all that," the third trader said.

Kodak weakens

A trader said Eastman Kodak Co.'s 9¾% second-lien notes due 2018 were "not really trading, but they're probably a little lower."

He quoted the notes at 68 bid, 69 offered. Another trader echoed that market, pointing to news out Friday regarding the company's plans to sell off its imaging units in order to reorganize around its printing businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.