Watford,I believe what you stated is correct, that AAZPB is...

Watford,
I believe what you stated is correct, that AAZPB is perpetual until ALZ decides to redeem or convert.

Another possibility is when a “Holder Redemption Event” occurs. Only 1 circumstance will give rise to this – a non-payment event and without a special resolution, ALZ declare payment or distribution or buyback on any shares.

Yes, some time in the future there is a possibility the BBSW plus 4.8% may become expensive compare to other financing method. In my earlier post, I declare that I don’t know how to price these hybrids to take into consideration the “credit worthiness” of the issuer (ALZ).

WBC SPII that closed recently had a margin rate of 3.8%. In addition, it is not perpetual and there are more circumstances that could give rise to a “Holder Redemption Event”. Obviously the market took into consideration some of these factors as AAZPB are transacting at half the face value of the notes.

Is AZZPB cheap? I have no idea. But now having understood the terms & conditions of the notes, I don’t think it fits my risk profile.