announcement, page-8

From the investor pack...

"The BBI EPS holders have the benefit of an unsecured and subordinated guarantee in respect of all payments on BBI EPS from Babcock & Brown Infrastructure Trust and Babcock & Brown Infrastructure Limited. This guarantee ranks above BBI Stapled Securities and rank equally with BBI's obligations in connection with BBINNZ SPARCS."

From the announcement...

"an additional undertaking from BBI that it will not make any cash distributions (being dividends or distributions on the BBI Stapled Securities or dividends on the BBI EPS) to either BBI Stapled Securities or BBI EPS for as long as there are BBI NZ SPARCS on issue"

This would seem to me to be income only. If it comes down to administration, then the capital portion would appear unchanged IMO. That is, still rank equally.