cer laggin behind cnp, page-32

this is from IS..if you still think i'm funny,you obviously don't understand what it means..


If in 2010, Centro has over $4.95 billion in cash and wants to repay the term loan and Hybrid Securities plus the interests, Centro would need to repay the $3.9 billion term loan in full (plus any outstanding interest should therebe any), plus, for the Hybrid Securities, it would need to pay the Cash Redemption Amount, which shall be the greatest of:
the ‘current market price’ (based on a volume weighted average price at the relevant time) of a stapled security multiplied by the Conversion Number;
the ‘net value’ per stapled security (based on an independent valuation of Centro’s properties and services business) on the Calculation Date multiplied by the Conversion Number, where the Calculation Date is either the fifth trading day prior to the redemption or conversion date or the date of notice given to the Bond Manager upon an Event of Default;
if a recommended or successful offer for control for Centro has been made or occurred within 180 days prior to the Calculation Date, an amount equal to the ‘implied net value’ per stapled security on the Calculation Date for the Hybrid Security multiplied by the Conversion Number; and
an amount equal to the outstanding amount of the Hybrid Security as at the redemption date, which includes accrued but unpaid interest.
Therefore, it isn't as simple as paying out the $4.95bn plus interest owing. The full repayment of the term loans and full redemption of the Hybrid Securities would release Centro from those contracts