MMM The main questions re the hybrid still remain:
1. Will there be one or two votes and when? Will there be TWO votes; one vote in Jan to bring the hybrid into existence, and then a second additional vote to convert them (whether now or 7 yrs time or anywhere in between)? OR Will there be ONE combiined vote to bring the hybrid into existence and allow conversion at the time dictated by the lenders (holder) meaninf NO further vote in the future regarding conversion?
2. Will the terms of the hybrid allow Centro the right to payback the face/original value plus capitalised interest before the lenders convert?
I dont know anything much more about hybrids, convertible bonds etc from my initial research. Am still awaiting some discussion specifically on these points if anybody has any answers.
My only hunch is, as mentioned by another above, that the lenders get their access to upside via the 14.9% - and only need access to the remainder of the 90.1% dilution if Centro fails to generate enough either cash to repay or assets to secure alternative financersa nd then repay the current lenders.
truesouth
CNP Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
