HiBathurst put a response up to my question at the AGM on their...

Hi

Bathurst put a response up to my question at the AGM on their website. (See AGM section under Investors & News)

Question: Is there an ability and/or intention to repay the new convertible bond early as opposed to have them convert to shares at the option of the
bond holders at 49c?

Response: We do have the ability to request early redemption of the new convertible bond before maturity by giving notice to bond holders. We cannot prevent bond holders from electing to convert their holding to shares as part of this redemption process. Any funds repaid to bond holders that did not elect to convert to shares would be paid back at face value plus a 4% premium.

I think this settles it - the bonds are convertible at the sole discretion of the bond holders. Even if Bathurst redeem the bonds early, the bond holders have the right to convert to equity as part of the redemption process. Management effectively do not have a choice as to whether the bonds are converted as result of the deal that was done at the time they were granted. Again for context, at the time of the deal solvency was far from certain and the price at issue was a 30% premium to the 90 day average share price.

Whilst like others I would rather not have the shares diluted, the flip side is that of the bonds are converted, Bathurst will effectively be debt free and have an additional A$10m of funds available for dividends, share buybacks etc....