It is Gunns’ intention to review its options with respect to the FORESTS on a regular basis. Gunns expects to convert the FORESTS into ordinary equity in the 2nd half of FY09. In line with the terms of the FORESTS, Gunns intends to step up the margin on the FORESTS, from 250 basis points to 500 basis points above the 90 day bank bill swap rate, from 14 October 2008 until conversion.
GNS Price at posting:
87.4¢ Sentiment: None Disclosure: Not Held