The first series CAMPA's were paying 7.5% plus franking,...

The first series CAMPA's were paying 7.5% plus franking, effectively 10.7% - far too much for today's market.

The present offer is a lot more palatable for share holders. I assume that each preference share will convert to one ordinary share (that was the traditional way of convertibles and was the offer for CAMPA's before bonus issues). Preference share holders will pay 96c now for a share in four years time and receive 6.5%pa during that time. You can buy an ordinary today for 86c and get 8.3%pa in gross dividends. And the company issues new equity at 96c compared to NTA of 90c or so.

So the preference shares return considerably less than an ordinary share, but you get the preference rights - first dibs on dividend etc. Looks very fair to existing shareholders. I won't be taking up any preference shares but am more than happy for others to.