2020 The Year Of URF, page-10

URFPA are convertible from 1 Jan 2023, if not they will increase the interest from 6.25% to 8.75%

This means there is incentive to convert and will not be repaid at face value. The manager would only repay at face value if the ordinary units are trading above $100/44 = $2.27 which seems extremely unlikely.

Note conversion occurs at a discount of 2.5% to market value of ordinary units which i have excluded for simplicity.

Max conversion of 205 units ~ $100/205 = $0.48

If we assume ordinary units fall to $0.20 at 1 Jan 2023. You will be stuck with conversion. ie. you will effectively pay $0.48 for $0.20. You would however get your interest payments over the last 3 years so you would be getting $0.0625 x 3 = $0.1875.which provides some sort of safety buffer.

For those of us lucky to buy at say $75 today ~ $75/205 = $0.36, current buyers safety margin is alot higher.

For a no brainer buy, URFHA would need to hit $38. If you are a believer in URF you would only buy URFPA and not URF...

For me the risk is too great for a big allocation at this pricepoint. Stick to a small parcel size...