If management can find a better deal by having to drag noteholders on for longer, the penalty is AUD$5M or US$3.5M - peanuts in comparison to magnitude deals that AZZ management will no doubt be on the search for.
In the current structure, there is no protection against AZZ dragging this on.
If they wanted to prove to Noteholders that they are willing to close a deal as soon as possible then it would be structured:
Conversion ratio increases to:
6-1 after 3 months
8-1 after 6 months
10-1 after 9 months
12-1 after 10 months
AZZ Price at posting:
50.0¢ Sentiment: None Disclosure: Held
