Ann: Dividend/Distribution - AYUPA, page-32

I had been a holder of AYUPA since 2022 and bought on the basis that the interest rate was approx 8.5% when the cash rate was <1% based on the price I paid of $82. This in my view was a good investment in that I believed (hoped) AYU would redeem at some point at face value ($100), however this latest CR at $72.5 caused me to accept that AYU would not redeem as this money was to be used to pay down debt.
Given that the cash rate was circa 1% when the original IPO was made it made the value of the bonds worth more than the face value and they traded around $104 for a period but started to trade lower as the RBA started lowering rates, this has continued.
Based on the value at the time of the entitlement offer it was asking in my view for current holders to dilute the value of their holdings further and while the interest rate + franking is still much better than you can get on TD,s it is now no better than floating rate notes in my view which hold their value better if you dont hold to redemption the date of which is clearly stated.
I cant see how the value of AYUPA can increase much unless interest rates are once again reduced to near zero.
So in a nutshell I not only didn,t take up the entitlement but sold at a loss to offset some other capital gains
Only My opinion
DYOR