Maybe I'm misreading this, but looks like a smart move and reasonable terms here, (*subject to an assumption*)
1) Issued convertible notes writh face value of $300m,
2) Entered into covered call options with 3rd party for the equivalent of $300m (doen't state exercise price, but assume conversion price of con-note - $6.63)
3) Receive $293m proceeds after option and transaction costs
4) Paying 4.25% coupon
5) At conversion, exercise the call option, pay the $300m to third party for share, issue those shares or redeem for $300m cash
If true that's the equivalent of borrowing for 5 years at cost of 4.8% (excluding any dividend adjustments in excess fo 16c).
They are then cashed up and well positioned to capitalise on any opportunities that may emerge, Malabar, Anglo etc. I'm sure in the interim they can invest in fixed income interest instruments to cover reasonable part of the cost.
They note in the release there will like be volatility in the share price as counterparties enter into derivative transactions in the ord shares.
Please correct me if I'm wrong.
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