@Ashentegra would you mind pls giving me a brief lesson in the conditions of this subordinated debt. I went onto the website BHP quoted for terms and conditions which only confuses things more for me.
my understanding is:
BHP sold 600m pound of notes/debt giving the holders/(buyers of these notes) a fixed interest rate of 6.5% back in 2015 and BHP were happy to pay that 6.5% interest rate in pounds based on the debt valued in pounds until 2077.
on 31/10/2015 1 USD bought .6481 BP hence 600m pound is 925m USD today 29/09/2022 1 USD buys 0.92 BP hence this 600m pound back in 2015 is now worth 652m USD today
Am i right in assuming BHP can buy back the notes on 22nd October 2022 at an exchange rate similar to today's and only have to pay 652m USD for the 925m USD raised back in 2015.
Assuming they did transfer it back to USD in 2015, that is a fantastic deal or am i missing something???
Could anybody please clarify my misunderstanding?
BHP Price at posting:
$37.25 Sentiment: Buy Disclosure: Held
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