Melua, I believed that to get 75% over the line everyone would...

Melua, I believed that to get 75% over the line everyone would have to understand all or most of the issues. As we do not understand all of the issues in total it was unlikely that the bond holders who are traditionally risk averse would have any hope. One of the key brokers here Forsyth Barr have given up on BBI most likely because of the demise of BNB and not understanding the difference. The other najor broker ABN Amro has had more insightful reccommendations and they were having a bob each way on reset.

To get their latest take

BBI SPARCS EGM was today and the amendments to the Trust Deed were NOT PASSED. As a result all those holders who requested conversion of 50% of their holding of SPARCS will have them converted on Monday 18 May. Requests for FV$25.8m of SPARCS had been received by the Registry previously.

Excluding today's pricing the last 19 days VWAP is 11.28cents (approx). Price chart from November attached. Today the BBI Stapled Security is quoted as having traded between 11c and 12.5c.

It is difficult to know whether holders should try to exit immediately or hold the security and hope for an increase in the price of the stapled security. For those holders who are nervous on the exposure this may at least provide an avenue to exit and if they can achieve close to the face value then it is a quantum improvement on the last traded price of BBN010 at 350% (30.8 cents). It is doubtful that there will be enough support at current price levels to absorb the likely volume of selling based on the conversion amount at these levels so some management of the sales may be necessary. The last NTA of the BBI Stapled Securities was A$1.00 but given economic conditions can see this weakening.

Recent news from BBI has been mixed with some concern regarding the future performance of PD Ports and good news on bank commitment for Dampier Bunbury Pipeline - announcements below.

11 May 2009
Babcock & Brown Infrastructure (ASX: BBI) notes the announcement on Friday 8 May (UK time) by Corus that it has been forced to open consultations that might result in a decision to mothball its Teesside Cast Products (TCP) plant in northeast England.
The announcement by Corus can be found at:

http://www.corusgroup.com/en/news/news/2009_consortium_terminates_tcp_contract

Corus is a significant customer of BBI's wholly owned subsidiary PD Ports. While BBI understands that no decision has yet been made by Corus, if their Teeside plant were to close as a result of this development, the closure would materially impact future years' revenue and cash flow at PD Ports, although PD Ports’ operating results for the full year ending 30 June 2009 should not be materially impacted.

BBI is currently assessing the impact of the Corus news on the ongoing sales process of PD Ports and any related refinancing. BBI will continue to appraise this situation and update the market in due course should the impact be considered material. "

29 April 2009

DBP OBTAINS COMMITMENTS FOR $480M REFINANCING

Dampier Bunbury Pipeline (DBP) is pleased to announce that it has entered into

bank commitment letters to refinance its $480 million Stage 5A bank facility which

matures in October 2009.

The refinanced facility was oversubscribed with approximately 45% of final allocated

commitments in 5 year funding and the balance in 3 year funding.

Documentation and financial close of the refinanced facility is expected to be

completed during May 2009.

The eight (8) members of the bank syndicate are: Bank of Tokyo-Mitsubishi UFJ,

Barclays Capital, BBVA, Calyon, Commonwealth Bank of Australia, Macquarie

Bank, National Australia Bank and Westpac. DBP was advised on the refinancing

by AMP Capital Investors and Macquarie Capital Advisers.

DBP’s Executive Chairman, Stuart Hohnen, said: "DBP attracted strong support for

the refinancing from existing bank relationships as well as new local and overseas

banks.”

* DBP is the trading name of the DBNGP group of entities.






--------------------------------------------------------------------------------
From: Rochelle Vidler [mailto:[email protected]]
Sent: Friday, 15 May 2009 11:14 a.m.
To: Deidre Copley
Subject: BBI - Sparcs EGM