For now, I think you need to work of the $153m @ 90% being TSI...

For now, I think you need to work of the $153m @ 90% being TSI share i.e $137.7m. This is the valuation used before the debentures. For now, the debentures are debt until converted. This value sits ok with me, as my information is that these businesses are valued about 8 times EBITDA.

Once converted at IPO (if it gets there) it will represent 16.7% of the fully diluted shares on issue of TSI. $37.6m divided by$ 190m is more 19.8% is more than 16.7%, so I believe that there must be management incentive options for conversion to reach IPO (well deserved). It also means that the investor (after extensive DD) believes that the 16.7% holding is a good substitute for the $37.6m, which would imply they believe the value of TSI at IPO will be at least circular $225m at IPO to maintain the $37.6m and assuming the 8% coupon is paid in cash. If the assumption re options and coupon is correct, the end holding in TSI should be roughly on a fully diluted basis (and assuming no further raisings) P Investor 16.7%, Management 12.1%, FND 71.2%.

Could be way off, but sort of make sense to me.

Cheers