The banks ultimately want $1 billion (+ capital interest) back at some time in the future (before the 7 years are up). To be able to get that amount back they need to convert their hybrids at a stage where the SP has risen significantly beyond its current level.
The banks are basically investing in the hope that the CNP SP rises to a viable level for them to do that.
The more I think about this the better it looks to me too.
Could you paste a pic of your spreadsheet here so we can see the numbers you're getting? I'm basically interested to see at what price the SP has to be for the banks to be able to convert their debt into equity at.
Many thanks for your thoughts on this
CNP Price at posting:
8.7¢ Sentiment: Buy Disclosure: Held