My understanding is they are going to use the new debt to pay down the senior debt. They also have tangible assets worth in a the vicinity of 1.5 billion, which is only just below the accumulative debt. Of course there is risk which is why it is paying such a high level of interest, but i believe that you would be able to recover some funds should they go under.
Im pretty sure the first notes have never missed a payment, and are currently selling for $105, with a face value of 100. So that is a 5% capital gain on top of the near 11% coupon rate. Although there is risks associated with these, i wouldn't exactly call them a dog. They do currently have a track record with the initial notes for comparison.
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Ann: Healthscope Notes II - Interest Rate , page-6
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