Ann: Financing Update, page-347

I suspect Meridian or some other junior debt provider is possibly looking at convertible bonds as a possible form of the junior debt.

Could those more knowledgeable and experienced comment on how they see the strategy to establish an initial "conversion price" from the point of view of the Meridian or other sophisticated investor. Would they typically use recent VWAP to set an initial cheap conversion price? Could that be part of the reason for subdued prices with a bit of selling to hold price low till junior debt details are finalised (low conversion price)

I have only had limited (and poor) experience with convertible bonds in the past. Certain situations (detailed in the in bonds fine print) can arise which trigger the option to convert (to dilute holders) and then there is the vanilla - could not raise the capital in time to repay the debt which triggers conversion to shares (dilution). I seem to recall that the bond detailed fine print was not made public in my LNC experience but I was able to track them down on the Credit Suisse website as they handled the issue. We did not get to see who exactly held the convertible bonds as they were issued in Singapore, the experience left a scar is all I remember.....

I am looking forward to see how FAR handle the junior debt.

I am hoping for an off-take agreement rather than a convertible bond solution.

Maybe the junior debt is optional if that is the "about right" WPL payment to FAR to waive rights in the event PE comes through