aapzb risk, page-3

I agree with 2ic

Main points of agreement in my opinion are:
- the step up is simply an option for refinancing. The extra cost is small and buys company time on refinancing after which they can look into exchange
- my guess company will arrange for syndicated (or senior) debt to pay out note holders rather than exchange for equity. But I am indifferent as hedging using CFD's during VWAP period mitigates risk of price crash as holders all sell on the day equity hits broker accounts. This locks in capital gain.

In fact, the use of CFD's to hedge this VWAP risk is a textbook case of using CFD's in a non-speculative fashion.